Answer all the questions (25 MARKS)

Thakholi pty allocates duties of financial statements preparations to its different accountants in office. Your duty is to prepare a STATEMENT OF CASH FLOWS using the following statements that have been prepared by your colleagues

Thakholi pty ltd Statement of profit or loss and comprehensive income for the year ended 31^st December 2019

	$000
Revenue	1800
Cost of sales	(1000)
Gross profit	800
Distribution cost	(170)
Administrative expenses	(250)
Loss on disposable of a non-current asset	(15)
Profit from operations	365
Finance cost	(120)
Profit before tax	245
Tax charge	(61)
Profit for the year	184

Thakholi pty ltd statement of financial position as at 31^st December 2019

ASSETS	$000 31 December 2019	$000 31 December 2018
Non-current asset
Property,plant & equipment	1580	1320
	1580	1320
Current assets
Inventories	1270	900
Trade & other receivables	642	1000
Prepayments	320	-
Cash and cash equivalents	1100	1350
Total assets	4912	4570
EQUITY AND LIABILITIES
Equity
Share capital	1575	1457
Share premium	800	244
Retained earnings	977	743
Revaluation reserves	50	70
	3402	2514
Non-current liabilities
Long term loans	648	763
Current liabilities
Trade and other payables	642	869
Accruals	130	278
Tax liability	90	146
Total liability	862	1293
Total Equity and Liabilities	4912	4570

Additional information

1. There was an impairment of $24,000 on the inventory value during the year
2. Depreciation for PPE (property plant and equipment) was $76, 500
3. A non-current asset that was bought for $96,480 and has been depreciated for $68,250 was disposed for cash
4. All the dividends of $328, 500 were paid during the year
5. The entity makes all the purchases and sales on credit
6. All other expenses are on cash basis

Required: Your duty in Thakholi accounting departments is to

1. Reconcile the profit from operations to cash from operating activities for the year ended 31^st December 2019(10 marks)
2. Prepare a cash flow statement for the year ended 31^st December 2019 (15 marks)