Less Provision for bad (1,700) debts Net trade receivables (1,400) 37.400 34.800 4. The current tax payable at 30 September 2021 was paid in May 2022. 5. The proposed dividend for the year 30 September 2023 is $29,600 and the proposed dividend for the year 30 September 2022 was $34,800. If approved at the annual general meeting (AGM), the dividend is paid for immediately. The AGM is usually held three months after the reporting period end date (i.e., 30 September). 6. During the year, 10,000 shares were issued at $1.80 per share. 7. Profit before interest and taxes for the year ended 30 September 2022 is $65,500. Required: a) Your task is to prepare a Statement of Cash flows for the year ended 30 September 2022. 20 marks b) Explain why profit should be reconciled to net operating cash flows. Give examples from this question to explain your answer. 10 marks Question 2 (Total: 35 marks) Prominent Pte Ltd produces furnitures at several factories. Its Seberang Prai factory produces office chairs. Management aims to increase production in the coming year to 800 units. Therefore, management is exploring two production strategies for the coming year. The first strategy is to continue operations with the existing machine, Machine A, and the second strategy is to rent a new machine, Machine B, to produce the office chairs. The monthly rental of Machine B is $14,000. Machine B takes half an hour to produce one office chair. However, it requires a more skilled labour force with an hourly rate of $30 per hour. Comparatively, continuing to use Machine A means that costs will remain the same. Machine A is 5 years old and is operating below capacity. The hourly labour rate is $20 and the materials required for each unit is $30. Each office chair is assembled within an hour. Each unit of the finished office chair is sold for $120.The fixed monthly running costs of the factory is $21,000. Required: a) Your task is to calculate break-even point in units, break-even point in $ (round to the nearest $), unit contribution margin for each strategy. 10 marks b) For each strategy, what is the profit that can be generated at the target production level of 800 units? 5 marks c) For each strategy, calculate the margin of safety in units and as a percentage of expected 5 marks sales volume. 3 d) which strategy will you recommend to management? Why? recommendation with reference to your assessment of the strategies. Explain your 15 marks Note: State all relevant formulas in your assessment of the strategies