Reference no: EM132931086

The 2021 accounting records of Hi-Fi Systems Limited shows opening cash at bank balance of $12,000.

The following transactions and events have occurred during the year.

Items $

Opening Cash at Bank balance 12,000,

Cash Sales 80,300,

Depreciation Expense 44,300,

Issue of Ordinary Shares for cash 50,000,

Loss on sale of vehicle 8,450,

Payment of dividend 14,630,

Payment of Income Tax 21,000,

Payment of Interest 6,500,

Payment of Other Expenses 21,600,

Payment of Wages 69,530,

Payment to Accounts Payable 81,340,

Proceeds of Sale of vehicle 22,000,

Profit after income tax 19,000,

Purchase of land for cash 50,000,

Receipts from Accounts Receivable 150,000,

Receipt of Dividend income 15,000,

Receipt of Interest Income 4,300,

Redemption of Bonds for Cash 22,000,

Sale of Equipment for cash 23,000.

Required

Question 1: Explain by preparing a fully classified Statement of Cash Flows for Hi-Fi Systems Limited for the year ended 30th June, 2021.