Below is information about the financial position of Wayne Ltd as at 30 June 2021 and 2022, and information about the companys profit or loss for the year ended 30 June 2022:

Information for Wayne Ltds financial position

As at 30 June

	2022	2021
Assets Cash at bank Accounts receivable Inventory Prepaid insurance Land Machinery Accumulated depreciation: machinery Total assets	$ 23 000 33 500 82 000 2 500 40 000 360 000 (81 000) 460 000	$ 6 500 37 500 66 000 3 500 44 800 300 000 (67 000) 391 300
Liabilities Accounts payable Interest payable Other accrued expenses Long-term borrowings Equity Share capital Retained earnings Total liabilities and equity	25 000 3 000 7 000 145 000 170 000 110 000 460 000	22 000 3 400 4 500 120 000 100 000 141 400 391 300

Information for Wayne Ltds profit or loss

For the year ended 30 June 2022

Income

Sales $420 000

Lease income received 7 500

Gain on the sale of machinery 9 000

Less: Expenses

Cost of sales 281 000

Interest expense 11 500

Loss on the sale of land 10 000

Depreciation expense 22 000

Insurance expense 3 500

Other operating expenses 81 500

Profit for the year 27 000

Additional information:

(a) All sales and purchases are on credit.

(b) Wayne Ltd classifies interest paid as an operating activity and dividends paid as a financing activity.

(c) Land with an original cost of $44,800 was sold for cash of $34,800 during the year.

(d) Machinery with a carrying amount of $25,000 (cost $33,000 and accumulated depreciation $8,000) was sold for cash of $34,000.

(e) Shares were issued for cash in 2022.

(f) Lease income is earned from leasing part of the land holdings that are in excess to operating needs.

Required:

Based on the above information, prepare the statement of cash flows for Wayne Ltd for the year ended 30 June 2022 using the direct method. Ignore income tax. (14 marks)

Reminder:

• No marks will be allocated to workings. Suggestion: show cash paid to suppliers of inventory and to others separately.
• Please provide your answer in the space below. There is a 40-line limit in the space.