Pippa Highton set up a small business from her home by contributing $8000 cash to the business. The business is registered for GST. For the year ended 30 June 2018, the following transactions occurred.

 1.  Pippa contributed $8000 cash to the business.

 2.  Inventory was purchased on credit for $3000 plus GST of 10%. Pippa decided to adopt the perpetual inventory system.

 3.  Sales revenue of $4500 was earned, plus GST, for the sale of inventory on credit. Cost of sales was $3000.

 4.  Inventory was acquired for $2800 plus GST on credit.

 5.  Credit sales for $3000 plus GST were recorded, the cost of sales being $2100.

 6.  $3200 cash was received from accounts receivable.

 7.  $10 000 was borrowed from a bank under a long-term loan.

 8.  Equipment was purchased for $6000 plus GST, using the money borrowed.

 9.  GST owing was paid to the ATO.

 10. Wages of $800 were paid to a part-time assistant.

 11. $3300 cash was paid on accounts payable.

 12. Inventory costing $2500 plus GST was purchased on credit.

 13. Credit sales of $3000 plus GST were made, the cost of sales being $1500. The terms of the sale were 2/10, n/30.

 14. The customer in (13) paid for the goods within the discount period.

Required

A. Prepare journal entries (in general journal form) for the business of Pippa Highton.

B. Prepare the income statement and statement of financial position of the business after all transactions have been recorded.

C. Prepare the statement of cash flows under the direct method for the business using the analysis of cash records.

D. Prepare the statement of cash flows under the direct method for the business by analysing financial statements.

E. Prepare a note reconciling the cash flows from operating activities to profit.