Financial figures of the business of C. Wilson for the last 2 years are shown below.

The income statement for the business for the year ended 30 June 2021 reveals the following details.

Additional information

1. During the year ended 30 June 2021, Wilson withdrew $30 per week in cash for 52 weeks for private purposes.

2. Wilson also withdrew $1200 on her business bank account to pay her personal income tax.

3. Land, shown in the accounts at $6000, was sold during the year for $8400.

4. Plant costing $1800 and written down to $900 was sold for $720.

5. Ignore GST.

Required

(a) Prepare a statement of cash flows for the year ended 30 June 2021 using the direct method.

(b) Prepare the note to the above statement reconciling cash flows from operating activities with profit.

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ASSETS C. WILSON Comparative Statements of Financial Position as at 30 June 2020 2021 Cash at bank Accounts receivable Inventory $ 2820 $ 4200 5100 14400 16800 Plant and equipment Accumulated depreciation - plant and equipment $ 9000 4200 $10 800 4800 4 500 6300 Land 12000 6000 Buildings 12000 12000 Accumulated depreciation - buildings LIABILITIES AND EQUITY Accounts payable Bank overdraft C. Wilson, Capital 600 11400 840 11160 $46 800 $48180 7200 7800 3000 36600 $46800 40380 $48180