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

IronManLtd
Statement of Financial Position as at 30 June
	30-Jun-21	30-Jun-20
CURRENT ASSETS	$	$
Cash	21,300	8,300
Accounts Receivable	22,000	21,500
Allowance for Doubtful Debts	(750)	(650)
Inventories	55,000	45,260
Prepaid Expenses	4,500	5,000
	102,050	79,410
NON-CURRENT ASSETS
Deferred Tax Asset	1,350	1,200
Land and Buildings - at cost	257,500	242,500
Accumulated depreciation- buildings	(50,500)	(46,000)
Equipment - at cost	43,000	40,000
Accumulated depreciation- equipment	(10,000)	(15,000)
	241,350	222,700
TOTAL ASSETS	343,400	302,110
CURRENT LIABILITIES
Accounts Payable	44,450	46,460
Accrued Expenses	3,500	2,500
Interest Payable	2,500	2,950
Current tax liability	8,700	6,000
	59,150	57,910
NON- CURRENT LIABILITIES
Deferred Tax Liability	1,850	1,650
Bank Loan (Secured)	114,500	116,100
	116,350	117,750
TOTAL LIABILITIES	175,500	175,660
Share Capital	98,950	78,950
Retained Earnings	68,950	47,500
	167,900	126,450
TOTAL EQUITY AND LIABILITIES	343,400	302,110

IronManLtd
Statement of Profit or Loss
for the year ended 30 June 2021
Income	$	$
Sales	593,500
Gain on sale of land	1,500
Gain on sale of equipment	6,500
Discount received	1,100
Total Income		602,600
Less: Expenses:
Cost of Sales	420,000
Depreciation Expense - equipment	4,000
Depreciation Expense - buildings	4,500
Interest Expense	3,900
Bad Debts Expense	1,100
Discount Allowed	450
Employee and Other Expenses	110,000	543,950
Profit before Tax		58,650
Income Tax Expense		(17,500)
Profit for the year		41,150

Required:

1. Prepare the OPERATING activities section ONLY of the statement of cash flows for IronMan Ltd for the year ended 30 June 2021 using the direct method as required by AASB 107.

2. Prepare a reconciliation of net cash flows arising from operating activities with profit.