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Question 2 (10 marks) The accounting records of JasonJohnson Company provided the data below for years ending 30 June 2022 and 30 June 2021: 2022

Question 2(10 marks)

The accounting records of JasonJohnson Company provided the data below for years ending 30 June 2022 and 30 June 2021:

2022 2021
$ $
Sales (all on credit) for the year 950,000
Cost of goods sold for the year 380,000
Discount provided to customers for early payment 3,500
Bad debts expense for the year 2,500
Depreciation expense 55,000
Net profit 509,000
30 June 2022 30 June 2021
$ $
Accounts receivable 160,000 140,000

Less: Allowance for doubtful debts

4,500 4,200
155,500 135,800
Inventory 88,360 62,200
Accounts payable 55,500 47,700

Required:

a) Based on the information given, prepare the section of cash flows statement for "net cash flows from operating activities" for the year ended 30 June 2022for JasonJohnson company. Show your calculations for each item included in the section of the statement. (5 marks)

ANSWER a):

b)Prepare a reconciliation of net profit to net cash flows from operating activities. (5 marks)

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