Melanie Ltd requires a Statement of Cash Flows to be prepared for the year ended 31 March 2017; the following information taigagavatgl for this purpose.

As at 31 March:	2017	2016
Cash	$55 000	$33 000
Accounts receivable	20 000	30 000
Inventory	15 000	10 000
Prepaid operating expenses	5 000	1 000
Plant and Equipment	317 000	70 000
Accumulated depreciation	14 000	6 000
Accounts payable	34 000	20 000
Long term liabilities	130 000	20 000
Share capital	70 000	50 000
Retained profits	164 000	48 000
For the year ended 31 March:	2017
Sales	$507 000
Less expenses:
COGS	150 000
Depreciation expense	9 000
Interest expense	42 000
Loss on sale of equipment	3 000
Operating expenses	111 000
Profit before tax	192 000
Less Income tax expense	47 000
Profit after tax	$145 000

Additional information:

(i) During the year ended 31 March 2017 an item of equipment, which originally cost $8 000, was sold.

(ii) Melanie Ltd uses the direct method for presenting cash flows from operating activities.

(iii) Classify any dividends paid and interest paid as cash flows from financing activities.

(iv) Several items of plant and equipment were purchased during the year ended 31 March 2017; a long-term liability of $110 000 was specifically arranged for the purchases.

Required:

Prepare a Statement of Cash Flows for Melanie Ltd, for the year ended 31 March 2017, in accordance with NZIAS 7 Statement of Cash Flows. A reconciliation is required to be prepared. GST is not applicable. All workings, in the form of selected general ledger accounts, must be provided.