Lunar Company (Pty) Ltd‘s balance sheets for the last two years are provided below
Balance Sheets 2013 2012
Cash R 82,000 R 40,000
Accounts Receivable 180,000 150,000
Inventory 170,000 200,000
Equipment 200,000 140,000
Accum. Depreciation (72,000) (60,000)
Total Assets R560,000 R470,000
Accounts Payable R100,000 R 80,000
L/T Notes Payable 100,000 50,000
Ordinary Shares 250,000 250,000
Retained Earnings 110,000 90,000
Total Liabilities & Shareholders’ Equity R560,000 R470,000
The company’s income statement for 2013 is provided below:
Income Statement 2013
Sales R345,000
Expenses: Cost of Goods Sold R120,000
Operating Expenses 58,000
Depreciation Expense 20,000
Interest Expense 2,000
200,000
Operating Income 145,000
Gain on Sale-- 5,000
Equipment*
Income before Taxes 150,000
Tax Expense 30,000
Net Income R120,000
The company sold equipment for R57, 000 that had a cost of R60, 000
Required:
Prepare the company’s Statement of Cash flows for 2013. Use the direct method of computing cash flows from operating activities.