At the start of the year a firm owes wages of $2,000. It incurs a wages expense of $220,000 for the year. At the end of the year it has $3,000 outstanding.

What was the amount paid for wages in the year?

1. $225,000
2. $219,000
3. $221,000
4. $215,000.

Which of the following statements about the indirect profit reconciliation method is true?

1. AASB107 requires preparation of this reconciliation.
2. The starting point for the method is profit after tax.
3. The ending point for the method is cash flow from operating activities.
4. All of the above are true.