QUESTION 1: Preparation of a cash flow statement and reconciliation (10 Marks) You are employed in an accounting practice and your supervisor has asked you to prepare a cash flow statement and the reconciliation statement in accordance with AASB 107. This accounting standard requires a Cash Flow Statement to be disclosed in the general purpose financial report of a reporting entity. The information you require is supplied below: Singto Ltd Income statement for the year ending 30 June 2022 000's 000's $ 10,000 Sales $ Less cost of sales - opening inventory purchases $ 500 2,760 3,260 300 $ Less closing inventory $ $ 2,960 Gross Profit $ le 7,040 Add: other income Profit on sale of plant S 10 S 7,050 Less Operating and other expenses Depreciation Other operating expenses (cash) $ $ 25 750 s Impairment loss Goodwill 75 $ 850 Net Profit before tax $ 6,200 Income tax expense $ 1,860 Profit after tax S 4,340 Additional information 2021 2022 Cash at Bank Accounts receivable balance $ $ 700 2,500 $ $ 3,700 3,500 $ accounts payable Current tax payable Final dividend Payable $ $ 3,000 1,75 450 $ $ $ 2,500 1,860 370 All sales are made on credit Dividend payable and current tax payable as at 30 June 2021 were paid in 2022 An item of plant cost $370,000 with a carrying amount of $250,000 was sold during 2022 for $260,000. Singto Ltd issued 200,000 ordinary shares at $1 each fully paid in March 2022 Singto Ltd paid an interim dividend in December 2021 of $250,000 and last years final proposed dividend 1. Reconstruct the ledger accounts provided to calculate the information you will need for the Cash Flow Statement and Reconciliation to Cash Flow 2. Prepare a statement of Cash flow in accordance with AASB107 3. Prepare a statement in accordance with AASB107 reconciling net cash provided by operating activities to operating profit after income tax Accounts Receivable Date Details Debit Date Details Credit Cost of Goods Sold Date Details Debit Date Details Credit Accounts Payable Debit Date Date Details Details Credit Cash Flow Statement for Singto Ltd for year ending June 30, 2022 Cash Flows from Operating Activities: Net cash from operating activities Cash Flows from Investing Activities Net cash from investing activities Cash flows from financing activities Net cash used in financing activities Net increase/decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Singto Ltd Reconciliation of Net Cash Flow provided by Operating Activities with Net Profit For the year ending 30 June 2022 Net Profit After Tax Add: non-cash items Changes in assets and liabilities Net cash flow from operating activities