Below is the information relating to Simic and Nikolic Ltd for the year ended 30 June 2016.

Additional information (dollar amounts expressed in full units):

1. Equipment with an original cost of $500 000 was sold during the year.

2. Land with an original value of $600 000 was revalued upwards by $160 000 during the year.

3. A bonus share dividend of $200 000 was paid from the revaluation surplus.

4. An interim dividend was paid during the year.

Required

(a) Prepare a statement of cash flows, using the direct method.

(b) Reconcile profit to cash provided by operating activities.  

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Assets Current assets Cash Accounts receivable Allowance for doubtful debts Inventory Prepaid insurance Total current assets Non-current assets SIMIC AND NIKOLIC LTD Statement of financial position as at 30 June 2016 Land Buildings Accumulated depreciation-buildings Plant and equipment Accumulated depreciation-plant and equipment Office equipment Accumulated depreciation-office equipment Patents Total non-current assets Total assets 2016 $'000 3150 1 240 (60) 1520 60 5910 1630 2100 (540) 1454 (440) 430 (270) 260 4624 $10534 2015 $'000 1220 1100 (50) 1300 40 3610 1900 1670 (500) 1258 (610) 380 (190) 280 4188 $7798