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

Ariana Ltd
Statement of Financial Position as at 30 June
	30-Jun-21	30-Jun-20
CURRENT ASSETS	$	$
Cash	21,700	8,000
Accounts Receivable	27,000	26,500
Allowance for Doubtful Debts	(700)	(500)
Inventories	56,000	46,000
	104,000	80,000
NON-CURRENT ASSETS
Land and Buildings - at cost	192,500	242,500
Accumulated depreciation- buildings	(50,500)	(46,000)
Equipment - at cost	93,000	40,000
Accumulated depreciation- equipment	(19,000)	(15,000)
	216,000	221,500
TOTAL ASSETS	320,000	301,500
CURRENT LIABILITIES
Accounts payable	45,000	46,500
Accrued Expenses	3,500	1,900
Interest Payable	2,500	3,600
Current tax liability	8,000	6,000
	59,000	58,000
NON- CURRENT LIABILITIES
Bank Loan (Secured)	103,000	118,000
	103,000	118,000
TOTAL LIABILITIES	162,000	176,000
Share Capital	98,000	78,000
Retained Earnings	60,000	47,500
TOTAL EQUITY	158,000	125,500
TOTAL EQUITY AND LIABILITIES	320,000	301,500

Ariana Ltd
Statement of Profit or Loss
for the year ended 30 June 2022
Income
Sales	593,500
Gain on sale of land	9,000
Total Income		602,500
Less : Expenses:
Cost of Sales	420,000
Depreciation Expense - equipment	4,000
Depreciation Expense - buildings	4,500
Interest Expense	3,800
Bad Debts Expense	1,550
Employee and Other Expenses	110,000	543,850
Profit before Tax		58,650
Income Tax Expense		(17,500)
Profit for the year		41,150

Additional Information:

1. Land with a cost of $50,000 was sold for cash for $59,000

2. Equipment of $53,000 was purchased during the year.

3. 10,000 shares were issued during the year for $2 each.

4. Cash dividends were paid during the year.

5. A bank loan of $15,000 was repaid during the year.

Required:

Prepare the statement of cash flows for Ariana Ltd for the year ended 30 June 2021 using the direct method as required by AASB 107 (you are required to show the relevant T-account reconstructions).