Shown below is an extract from the comparative statements of financial position and statement of profit or loss of Iron Man Ltd for the year ended 30 June 2021: IronManLtd Statement of Financial Position as at 30 June 30-Jun-20 30-Jun-21 CURRENT ASSETS $ $ Cash Accounts Receivable Allowance for Doubtful Debts 21,300 22,000 (750) 55,000 4,500 102,050 8,300 21,500 (650) 45,260 5,000 Inventories Prepaid Expenses 79,410 1,350 NON-CURRENT ASSETS Deferred Tax Asset Land and Buildings - at cost Accumulated depreciation-buildings Equipment - at cost Accumulated depreciation equipment 257,500 (50,500) 43,000 (10,000) 241,350 1,200 242,500 (46,000) 40,000 (15,000) 222,700 302,110 TOTAL ASSETS 343,400 CURRENT LIABILITIES Accounts Payable Accrued Expenses Interest Payable Current tax liability 44,450 3,500 2,500 46,460 2,500 2,950 6,000 8,700 59,150 57,910 NON-CURRENT LIABILITIES Deferred Tax Liability Bank Loan (Secured) 1,850 114,500 116,350 1,650 116,100 117,750 175,660 TOTAL LIABILITIES 175,500 Share Capital 78,950 Retained Earnings 98,950 68,950 167,900 343,400 47,500 126,450 302,110 TOTAL EQUITY AND LIABILITIES 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 4,000 4,500 Depreciation Expense - equipment Depreciation Expense - buildings Interest Expense Bad Debts Expense 3,900 1,100 Discount Allowed 450 110,000 543,950 Employee and Other Expenses 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 Iron Man 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. (7 marks)