Marksman Sdn Bhds income statements for the years ended 31 December 2021 and 2022 and the statements of financial position (balance sheet) as at 31 December 2021 and 2022 are as follows:

Additional information 1. Depreciation expenses included in cost of sales, distribution expenses, and administrative expenses was as follows:

2. There were no non-current asset disposals in either year. 3. The amount of cash paid for interest equalled the expense in each year. 4. Dividends were paid totalling RM18,000,000 in each year. 5. Companies pay tax of 50% during their accounting year and the other 50% in the following year.

Required: a) Your task is to prepare a Statement of Cash flows for the year ended 31 December 2022. b) Explain why profit should be reconciled to net operating cash flows. Give examples from this question to explain your answer.

Ir EQUITY AND LIABILITIES Equity LandandBuildingsPlantandMachinery2021RM0006,00010,0002022RM00010,00012,000