[34 marks] Question 2: Statement of Cash Flows Set out below are Square Ltd financial statements for the year ending 31 December: Square Limited Comparative Balance Sheet as at 31 December 2018 2017 Assets Cash Accounts Receivable Allowance for Doubtful Debts Inventorv Land Plant Accumulated Depreciation - Plant Total Assets S 139,000 250,000 (35.000) 160,000 150,000 90,000 30,000 $ 794.000 724.000 $ 144,000 270,000 (30,000) 180,000 150,000 100,000 (20,000) Liabilities and Shareholders' Equity Bank Overdraft Accounts Pavable Accrued Salaries Long-term Loan Contributed Equity Retained Earnings Total Liabilities and Shareholders' Equitv 20,000 200,000 22,000 90,000 120,000 342.000 19,000 190,000 18,000 70,000 100,000 327,000 Square Limited Income Statement for the year ended 31 December 2018 Sales Less Cost of Goods Sold Gr Less Expenses: $ 250,000 130.000 120,000 oss Profit Depreciation Expense Bad Debts Expense Salaries Expense Interest Expense 10,000 25,000 30,000 20,000 (85,000) S 35,000 Total Expense:s Net Profit Part C continued An examination of the accounting records revealed the following additional information applicable to 2018: Contributed Equity increased by the issue of 20,000 $1 bonus shares out of Retained a. Earnings b. During the year, additional plant was purchased in cash. c. All sales and purchases were on account. d. Accounts payable pertains to inventory creditors. e. The bank overdraft in the business is considered to be an integral part of the business's cash management arrangements. Interest expense was paid in cash f. Required: For the purpose of this question, please ignore GST and Income Tax, but show all your WorKings. (i)Prepare a Statement of Cash Flows for Square Ltd for the year ending 31 December (26 marks) 2018 using the direct method (ii) Prepare a reconciliation of net profit to net cash provided from operating activities (8 marks) [Total 34 marks]