The financial statements for Moon Ltd are shown below.

Additional information

(a) Office furniture that had originally cost $22 000 and had accumulated depreciation of $4000 was sold during the year for $19 000 cash.

(b) Plant and machinery costing $100 000 was paid for by the issue of 100 000 shares at a price of $1 each.

(c) The company pays tax in one instalment. Income tax expense as reported ($54 860) consists of the tax expense for the year ($80 000) less an overprovision for tax from the previous year ($25 140).

(d) The bank overdraft facility is considered part of the day-to-day cash management operations.

Required

Prepare a statement of cash flows in accordance with IAS 7/AASB 107 using the direct method. Also show any notes to the statement that are necessary.

	NICKEL LTD Comparative Trial Balance as at 30 June
			2017					2018
			Debit		Credit				Debit		Credit
	Accounts payable Bills payable (trade) Bank overdraft Current tax liability Share capital General reserve Retained earnings Petty cash Accounts receivable Allowance for doubtful debts Bills receivable (trade) Inventory Plant and machinery Accumulated depreciation – plant and machinery Furniture and equipment Accumulated depreciation – furniture and equipment		$     500 115 620 15 120 365 160 498 000 100 000		$  96 640 28 420 27 800 60 000 600 000 100 000 87 640 10 000 54 900   29 000				$      500 208 640 10 860 605 780 784 000 78 000		$  86 160 32 160 168 640 80 000 900 000 150 000 109 420 20 000 111 400   30 000
			$1 094 400		$1 094 400				$1 687 780		$1 687 780

	Moon LTD Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2018
	INCOME Sales revenue Gain on sale of furniture					$2 000 000           1 000
	EXPENSES Cost of sales Depreciation expense Bad debts expense Other expenses		$700 000 61 500 34 000 998 860			2 001 000    1 794 360
	Profit before income tax Income tax expense					206 640     54 860
	PROFIT					$    151 780

	moon ltd Statement of Changes in Equity for the year ended 30 June 2018
			Share capital		Other reserves		Retained earnings		Total
	Balance at 1/7/17 Total comprehensive income for the period Dividends paid Issue of share capital Transfer to reserve		$600 000 300 000		$100 000  50 000		$87 640 151 780 (80 000) (50 000)		$787 640 151 780 (80 000) 300 000          0
	Balance at 30/6/18		$900 000		$150 000		$ 109 420			$1 159 420