Shown below is an extract from the comparative statements of financial position and statement of profit or loss of Crystall Ltd for the year ended 30 June 2021:

Crystall Ltd
Balance Sheet
as at 30 June
	2021	2020
	$000	$000
Cash at bank	60	30
Trade receivables	258	218
Allowance for doubtful debts	(50)	(42)
Inventories	450	480
CURRENT ASSETS	718	686
Plant & equipment at cost	500	480
Accum depreciation plant & equip.	(110)	(80)
NON-CURRENT ASSETS	390	400
TOTAL ASSETS	1,108	1,086
Accounts payable	294	322
Accrued Expenses	25	45
Interest payable	12	6
Current tax liability	37	35
CURRENT LIABILITIES	368	408
Mortgage	230	330
NON-CURRENT LIABILITIES	230	330
TOTAL LIABILITIES	598	738
NET ASSETS	510	348
Share capital	200	200
Retained earnings	310	148
TOTAL EQUITY	510	348

Crystall Ltd
Income Statement
for the year ended 30 June 2021
Revenue	$000
Sales (all sales are credit sales)	350
Total income		350
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 Crystall Ltd for the year ended 30 June 2021 using the direct method as required by AASB 107. (11 Marks)

2. Prepare a reconciliation of net cash flows arising from operating activities with profit. (4 marks)

CASHFLOWS FROM OPERATING ACTIVITIES
Cash received from Customers
Cash paid to Suppliers, Employees and Others
Cash generated from operations
Interest Paid
Income Tax Paid
Cash Flows from Operating Activities
CASHFLOWS FROM INVESTING ACTIVITIES
Cash Flows from Investing Activities
CASHFLOWS FROM FINANCING ACTIVITIES
Cash Flows from Financing Activities
Net Increase/Decrease in Cash
Opening Balance of Cash and Cash Equivalents
Closing Balance of Cash and Cash Equivalents

Reconciliation between Profit and Cashflows from Operating Activities

_______________________

Accounts Receivable ( if needed)

Allowance for Doubtful Debts( if needed)

Inventory( if needed)