Required (please show workings):

1. Prepare a cash flow statement for Pharmacy Adelaide Ltd for the year ended 30 June 2019 using the direct method. Show allworkings as most of the marks will come from workings.

2. Reconcile profit and net cash provided (used) by operating activities using the indirect method.

The financial statements of Pharmacy Adelaide Ltd appear below: Pharmacy Adelaide Ltd Comparative Statements of Financial Position as at 30 June 2019 ASSETS 2018 2019 Cash at Bank Accounts Receivade Consultation Service Receivable Inventory Prepaid Insurance Land Property, Plant and Equipment Accumulated Depreciation -PP&E $33,400 25,000 61,060 2,000 121,900 6,500 84,500 310,000 (46,500) 37,000 1,000 102,650 9,500 107,000 205,000 (40,000) 455564 460 IABILITIES AND EQUITY Accounts Payable Interest Payable Income Tax Payable Other Expenses Payable Debentures Payable Share Capital Retained Earnings $ 48,280 62,700 12,500 2,000 15,000 275,000 135,600 61,660 $455,550 564.460 18,800 1,000 13,500 246,870 78,100 49,000