Set out below are Palm Ltd's financial statements for the year ended 31 December Palm Ltd Comparative Statements of Financial Position as at 31 December 2020 2019 $ $ Assets Cash at Bank Accounts Receivable (net) Prepaid Expenses Inventory Equipment Accumulated Depreciation - Equipment Total Assets 56,000 123,000 10,000 52,000 270,000 (118,000) 393.000 47,000 107,000 9,000 46,000 262,000 (109,000) 362.000 $ $ $ $ Liabilities and Shareholders' Equity Accounts Payable Accrued Expenses Payable Income Taxes Payable Notes Payable Ordinary Shares Retained Earnings Total Liabilities and Shareholders' Equity 18,000 5,000 7,000 120,000 213,000 30.000 393.000 11,000 9,000 5,000 130,000 200,000 7,000 362.000 $ $ Palm Ltd Statement of Profit or Loss for the Year Ended 31 December 2020 Sales Gain on sale of equipment $ 1,339,000 3,000 1,342,000 Less: $ Cost of sales Operating expenses (excluding depreciation) Depreciation expense Interest expense Income taxes expense Net profit after tax 908,000 346,000 24,000 14,000 12,000 (1.304,000) $ 38.000 The following additional information was provided: (a) All sales and purchases of inventories were on account. (b) Accounts payable pertains to inventory creditors. (c) Old equipment was sold for cash, resulting in a gain of $3,000. New equipment costing $32,000 was purchased for cash during the year. (d) A cash dividend was declared and paid during the year. (e) Notes payable with a face value of $10,000 were repaid by cash during the year. (f) Additional shares were issued for cash during the year. (9) Interest expense was settled in cash. Required: For the purpose of this question, please ignore GST, but show ALL your workings. i. Prepare a Statement of Cash Flows for Palm Ltd for the year ended 31 December 2020 using the direct method, as per Figure 11.25 of your text. (27 marks) ii. Prepare a reconciliation of net profit after tax to net cash provided from operating activities, as per Figure 11.27 of your text. (10 marks)