Etunda Ltd is a retailer shop that specializes in the selling of agricultural implements. The following financial information is extracted from the financial statements of Etunda Ltd.

Etunda Ltd Statement of Financial position as at 31 December

2020 2019 ASSETS.

Non-current assets

Land and buildings at revaluation 280 000 240 000 Plant and machinery at cost price 380 000 348 000 Accumulated depreciation on plant and machinery (70 000) (56 000) Net Book Value 310 000 292 000 Current assets 440 000 344 000 Inventory 153 600 154 800 Trade and other receivables 216 000 189 200 Cash and cash equivalents 70 400 0 1 030 000 876 000 EQUITY AND LIABILITIES Share capital 460 000 300 000 Accumulated profit 260 000 200 000 Revaluation reserve 40 000 0 760 000 500 000 Non-current liabilities Long-term loan 40 000 80 000 Current liabilities 230 000 296 000 Trade and other payables 210 000 186 400 Shareholders for dividends 20 000 0 Bank overdraft 0 109 600 1 030 000 876 000 Statement of profit or loss and other comprehensive income for the year ended 31 December 2020 (Abstract)

Revenue 380 000 Cost of sales 160 000 Profit before tax 112 000 Tax 32 000 Profit for the year 80 000

The following information was communicated to you:

A new machine was purchased during the year to replace an old machine. The old machine was originally purchased for N$ 12 000 sold for N$ 3 200. On selling date, the accumulated depreciation was N$ 7 600.

Land and building was revalued on 1 June 2020 to N$ 280 000

Included in trade and other payables is an amount owed to Inland and Revenue:

2020 2019 10 000 14 400

Interest paid during the year amounted to N$ 28 000.

Depreciation amounted to N$ 21 600 for the year.

Dividends were declared during the current year.

Required:

1. Prepared the statement of cash flows (direct method) for Etunda Ltd for the year ended 31 December 2020 in accordance with IFRS. (28 marks)

2. Prepare the note for the reconciliation of profit before tax with cash flow from operating activities (6 marks).

No comparative figures are required.