QUESTION 3

The following information has been extracted from the financial records of Blue Ltd:

	31/3/2022	31/3/2021
Current assets:
Cash	$500	$275
Accounts receivable	5 241	5 452
Allowance for DD	250	300
Inventory	7 000	7 240
Current liabilities:
Bank overdraft	110	200
Accounts payable	6 342	7 992
GST payable	50	381
Interest expense payable	10	15
Dividends payable	150	-
Income tax payable	40	30
Retained earnings	18 950	21 750
Sales	69 918
Cost of goods sold	40 000
Operating expenses	14 591
Bad debt expense	150
Doubtful debt expense	239
Interest expense	206
Depreciation expense	3 300
Loss on sale of plant and equipment	500
Interest income	50
Dividend income	32
Tax expense	4 000

Additional information:

1. Blue Ltd uses the indirect method to report cash flows from operating activities.

2. The entity classifies dividend income, interest income, dividends paid and interest paid as operating cash flows.

3. The GST rate is 15%.

Required:

Prepare the Cash flows from operating activities section of the Statement of Cash Flows for Blue Ltd, in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2022.