Hornets Ltd Statement of Financial Position as at 30 June 2015 30-Jun-15 30-Jun-14 CURRENT ASSETS Cash 37,500 74,600 123,800 35,500 139,700 35,300 287,500 500,000 Accounts Receivables Prepaid Expenses Inventory 233,700 467,600 NON-CURRENT ASSETS Equipment Accumulated Depreciation - Equipment Buildings Accumulated Depreciation- Buildings 373,700 343,700 276,700 276,800(67,000) (96,900) 626,500 351,500 509,600(97,600) 253,900 (116,900) Land 180,500 51,500 82,500 172,500 Long Term Investments 1,049,400 754,600 TOTAL ASSETS 1,549,400| 1,222,200 CURRENT LIABILITIES Bank Overdraft 29,200 227,500 Accounts Payable Accrued Expenses Current Tax Liability 230,500 26,500 23,000 38,500 318,200 36,500 293,500 NON- CURRENT LIABILITIES 252,500 Loan Payable 162,500 312,500 Debentures due 1/9/2020 212,500 375,000 565,000 TOTAL LIABILITIES 883,200 668,500 Share Capital Retained Earnings 400,600 514,600 151,600 666,200 153,100 553,700 nasauJOU Statement of Profit or Loss for the year ended 30 June 2015 Sales 888,100 Less: Cost of Sales (537,800) 350,300 Gross Profit Add: Other Income: Gain on Sale of Investment 47,500 Less :Operating Expenses: (152,500) (61,900) (49,200 Administration Costs Other Expenses Depreciation Expense Interest Expense (52,500) Profit before Tax Income Tax Expense Profit for the year (24,510) 57,190 Additional Information 1. Management decided to display interest and dividends received under 'investing activities', interest paid under 'operating activities 'financing activities'. 2. New equipment of $30,000 was purchased for cash 3. Land was purchased at a cost $129,000. The payment consisted of $39,000 cash and the balance was funded by taking out a loan payable. 4. Additions to the buildings were paid in cash. and dividends paid under 5. Debentures were issued for cash. 6. Long Term Investments with a carrying amount of $90,000 were sold for cash at a profit of $47,500. 7. Dividends were paid during the year in cash. 8. Shares were issued for cash. Required: (a) Prepare a Statement of Cash Flows for Hornets Ltd for the year ended 30 June 2015, in accordance with the AASB 107, using the direct method. (b) Prepare the note reconciling profit to net cash generated from operating activities for the year ended 30 June 2015