The following comparative statements of financial position and income statement are for the business of Bargains Galore Pty Ltd:

	Bargains galore PTY LTD Comparative Statements of Financial Position as at 30 June
					2016				2017
	ASSETS Cash at bank Accounts receivable Inventory Prepaid expenses Plant and equipment Accumulated depreciation – plant and equipment				$   20 000 74 000 60 000 44 000 600 000 (180 000)				$   30 000 52 000 88 000 36 000 648 000 (230 000)
					$618 000				$624 000
	LIABILITIES AND EQUITY Accounts payable Expenses payable Current tax liability Share capital Retained earnings				$  96 000 22 000 50 000 300 000  150 000				$   60 000 40 000 44 000 300 000 180 000
					$618 000				$624 000

	Bargains galore PTY LTD Income Statement for year ended 30 June 2017
	INCOME Sales revenue							$800 000
	EXPENSES Cost of sales Wages and salaries Depreciation – plant and equipment Other expenses Income tax expense				$408 000 160 000 50 000 78 000  44 000			740 000
	PROFIT							$  60 000

Additional information

(a) All sales and purchases of inventory are on credit.

(b) Income tax is paid in one instalment during the year.

(c) A dividend had been paid to shareholders.

(d) Additional plant had been acquired for a cash outlay.

Required

A. Prepare the statement of cash flows for the company for the year ended 30 June 2017. Use the direct method.

B. Repeat requirement A using the indirect method.