Reference no: EM132065213

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.