Hi, Tutor Please help me to work out this attached question.

Hi, Tutor

Please help me to work out this attached question.

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Cash flow statement
ELMO
Ltd
Cash Flow Statement
Sources of Cash:
Sales of inventory
$185000
Sale of Ordinary shares in the company
$210000
Sale of Investments
$40000
Depreciation of Plant and Equipment
$27500
Issue of a Bill Payable for the purchase of a delivery vehicle
$10000
Interest on Investments
$3000
TOTAL SOURCES OF CASH:
$475500
Applications of Cash
Purchase of inventory
$129000
Operating expenses (including depreciation)
$80000
Purchase of Plant and Equipment
$170000
Purchase of Investments (details of sale above)
$37500
Purchase of delivery vehicle by issuing a Bill payable
$10000
Buyback of company shares
$5000
Interest on Bill Payable
$1500
TOTAL APPLICATIONS OF CASH
$433000
NET INCREASE IN CASH
$42500
Using the information provided, prepare a properly formatted statement of cash flows
using the direct method. Note: The only non-cash items are the depreciation and the
gain on sale of the investments. *The cash balance at the beginning of 2012 was given
as being $70 000.

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