Required: (i) Prepare a statement of cash flows for Lavender for the year ended 30 June 20X5 that is prepared using the requirements of AASB 107 Statement of Cash Flows using the direct method for determining Cash Flows from Operating Activities. (ii) Prepare the note to the accounts showing the reconciliation of Profit before Tax to Cash Flows from Operating activities using the indirect method.

The following information is taken from the financial statements for Lavender Ltd for the yea ended 30 June 205. Extract from the Income Statement is as follows The Statement of Financial Position is as follows: Additional information: - Profit before tax for the year ended 30 June 205 was $4,550,000. - Plant that was sold during the year had a cost of $500,000 and accumulated depreciation of $258,000. - Included in the expenses for the year were depreciation of $1,000,000 and doubtful debts of $900,000. - A transfer of $130,000 was made from retained earnings to reserves during the year. - Accounts payable relate only to inventory. - The tax rate is 30% per annum. The following information is taken from the financial statements for Lavender Ltd for the yea ended 30 June 205. Extract from the Income Statement is as follows The Statement of Financial Position is as follows: Additional information: - Profit before tax for the year ended 30 June 205 was $4,550,000. - Plant that was sold during the year had a cost of $500,000 and accumulated depreciation of $258,000. - Included in the expenses for the year were depreciation of $1,000,000 and doubtful debts of $900,000. - A transfer of $130,000 was made from retained earnings to reserves during the year. - Accounts payable relate only to inventory. - The tax rate is 30% per annum