Answer this question in an excel file and upload the file when completed.

Name your file in your last name and student ID. Giant Pty Ltd provides the following condensed version of the Statement of Profit or Loss and an extract from the Statement of Financial Position for the current financial year.

Giant Pty Ltd Statement of profit or loss (condensed version)

for the year ending 30 June 2025

$ Revenues 676,900

Cost of sales 335,000

Gross profit 341,900

Operating expenses 193,500

Income from operations before tax 148,400

Income tax expense 38,650

Profit 109,750

Giant Pty Ltd Statement of Financial position (Extract) as at 30 June

2025 2024 $ $

Accounts receivable 47,730 36,760

Inventory 39,550 27,880

Accounts payable 27,550 35,920 I

ncome tax payable 32,600 29,840

Additional information The company has no depreciable assets and no bad debts written-off during the year. Accounts payable covers all payables (including wages payable). Inventory purchases and operating expenses are reflected in Accounts Payable. Income tax paid for the year 2025 is $35,890. Required: a. Prepare the operating activities section of the Statement of Cash Flows for the year ended 30 June 2025 using the direct method. Show all workings. (6 marks) b. Briefly explain the differences between the direct method and the indirect method for preparing the operating activities section of the Statement of Cash Flows. (4 marks)