Shown below is an extract from the comparative statements of financial position and statement of profit or loss of Opal Ltd for the year ended 30 June 2021: Opal Ltd Balance Sheet as at 30 June 2021 2020 $000 $000 Cash at bank 55 30 Trade receivables 245 218 Allowance for doubtful debts (45) (42) Inventories 445 480 CURRENT ASSETS 700 686 Plant & equipment at cost 520 480 Accum depreciation - plant & equip. (105) (80) NON-CURRENT ASSETS 415 400 TOTAL ASSETS 1,115 1,086 Accounts payable 289 322 Accrued Expenses 20 45 Interest payable 10 Current tax liability 32 CURRENT LIABILITIES 351 Mortgage 400 NON-CURRENT LIABILITIES 400 TOTAL LIABILITIES 751 NET ASSETS 364 Share capital 200 Retained earnings 164 TOTAL EQUITY 364 6 35 408 330 330 738 348 200 148 348 TOTAL EQUITY Revenue Sales (all sales are credit sales) 350 Total income Less: Cost of Goods sold 140 Other expenses 20 Doubtful debts expense 10 Interest expense 23 Depreciation - Plant & Equipment 25 Total expenses 218 Profit before tax 132 Less: Income Tax Expense 40 PROFIT AFTER TAX 92 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 Opal 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. 364 Opal Ltd Income Statement for the year ended 30 June 2021 $000 348 350 (11 Marks) (4 marks)