Opposite are the comparative statements of financial position of Cresta Ltd as at 30 June 2016 and 2017, and the income statement and statement of changes in equity for the year ended 30 June 2017.

Additional information

(a) Other expenses include $66000 depreciation expense on machinery and insurance expense of $10500.

(b) All sales and purchases are on credit.

(c) Rental income is earned as a result of renting part of the property that is in excess of the company’s needs.

Required

Prepare the cash flows from operating activities only for Cresta Ltd for the year ended 30 June 2017, using the direct method. Ignore taxes.

	Cresta LTD Comparative Statements of Financial Position as at 30 June
				2016		2017
	ASSETS Cash at bank Accounts receivable Inventory Prepaid insurance Property Machinery Accumulated depreciation: machinery			$   19 500 112 500 198 000 10 500 134 400 900 000  (201 000)		$  69 000 100 500 246 000 7 500 120 000 1 080 000  (243 000)
				$1 173 900		$1 380 000
	LIABILITIES AND EQUITY Accounts payable Interest payable Other accrued expenses Mortgage payable Share capital Retained earnings			$  66 000 10 200 13 500 360 000 300 000 424 200		$  75 000 9 000 21 000 435 000 510 000 330 000
				$1 173 900		$1 380 000

	Cresta LTD Income Statement for the year ended 30 June 2017
	Sales Less: Cost of sales									$1 260 000 843 000
	Gross profit									417 000
	Add: Other income: Lease income Gain on the sale of machinery					$   22 500    27 000				49 500
										466 500
	Less: Expenses: Interest expense Loss on the sale of property Other expenses					34 500 30 000 321 000				385 500
	Profit									$  81 000

Cresta LTD Statement of Changes in Equity for the year ended 30 June 2017
		Share capital	Other reserves		Retained earnings		Total
	Balance at 1/7/16 Total comprehensive income for the period Dividends Issue of share capital	$300 000 210 000			$424 200 81 000 (175 200)		$724 200 81 000 (175 200)   210 000
	Balance at 30/6/17	$510 000			$330 000		$840 000