Selected financial statements of the Lodh Ltd are shown below:

Lodh Ltd Statement of Financial position As at 30 June 2020
	2020	2019
Assets	$	$
Cash at Bank	20 000	-
Account Receivable	32 000	28 000
Inventories	110 000	93 000
Land	42 000	83 000
Buildings	120 000	120 500
Accumulated Depreciation - buildings	(10 000)	(6 000)
Equipment	72 000	60 000
Accumulated depreciation - equipment	(30 000)	(18 000)
Total Assets	$356 000	$360 500
Liabilities
Accounts Payable	50 000	48 500
Bank Overdraft	-	20 000
Equity
Share Capital	216 000	200 000
Retained Earnings	90 000	92 000
Total liabilities and Equity	$356 000	$360 500

Lodh Ltd Statement of Profit or Loss and other comprehensive Income For the year ended 30 June 2020
		2020
Income	$	$
Sales revenue		435 500
Less: Expenses
Cost of sales	283 000
Employee Expenses	98 000
Interest Expenses	5 000
Loss on the sale of land	6 250
Depreciation Expenses - buildings	4 000
Depreciation Expenses - equipment	12 000	408 250
Profit for the year		$27 250

Additional information

(a) During the year ended 30 June 2020, cash dividends were paid to shareholders.

(b) Building extensions were paid for during the year, and a block of land, costing $37500 was sold for $31250 cash.

(c) No plant was purchased or sold during the year.

Required:

Prepare a reconciliation note for disclosure of cash flow from operating activities with profit.