1. Cash Flow Statements

Prepare a cash flow statement for Annas Apples Ltd using the information below. Use the indirect method for operating cash flows.

Net Profit for year ended 30 June 2017: $200,000

30 June 2017 1 July 2016

Cash ? $20,000

Inventory $30,000 $40,000

Accounts Payable $15,000 $30,000

Unearned Revenue $12,000 $15,000

Prepaid Insurance $18,000 $33,000

Goodwill $50,000 $0

Equipment $300,000 450,000

Acc Depn Equipment $150,000 $160,000

Loan Payable $50,000 $100,000

During the year equipment with a cost of $150,000 and accumulated depreciation of $50,000 was sold for $115,000. No other purchases or sales of equipment was made during the year.

During the year another business was purchased for cash.