Shown below is an extract from the comparative statements of financial position and statement of profit or loss of Crystal Ltd for the year ended 30 June 2021: Crystal Ltd Balance Sheet as at 30 June 2021 2020 $000 $000 Cash at bank 60 30 Trade receivables 250 218 Allowance for doubtful debts (50) Inventories 450 CURRENT ASSETS 710 Plant & equipment - at cost 525 Accum depreciation - plant & equip. (110) NON-CURRENT ASSETS 415 TOTAL ASSETS 1,125 Accounts payable 294 Accrued Expenses 25 Interest payable 12 Current tax liability 37 CURRENT LIABILITIES 368 Mortgage 430 NON-CURRENT LIABILITIES 430 TOTAL LIABILITIES 798 NET ASSETS 327 Share capital 200 Retained earnings 127 TOTAL EQUITY 327 (42) 480 686 480 (80) 400 1,086 322 45 6 35 408 330 330 738 348 200 148 348 Crystal Ltd Income Statement for the year ended 30 June 2021 $000 Revenue Sales (all sales are credit sales) 350 Total income Less: Cost of Goods sold 150 Other expenses 20 Doubtful debts expense 15 Interest expense 23 Depreciation - Plant & Equipment 30 Total expenses 238 Profit before tax 112 Less: Income Tax Expense 40 PROFIT AFTER TAX 72 Additional information: a) New plant and equipment was purchased in cash during the year. No plant or equipment was sold during the year. b) There are no cash sales during the year. c) The company pays tax once only before the end of financial year. d) The income tax rate is 30%. Required: 1. Prepare the statement of cash flows for Crystal Ltd for the year ended 30 June 2021 using the direct method as required by AASB 107. Prepare a reconciliation of net cash flows arising from operating activities with profit. 2. 350 (11 Marks) (4 marks)