Statements of Financial Position for Tyler Ltd as at 30 June 2021 and 30 June 2020 are provided below: Tyler Ltd Statement of Financial Position as at 30 June 2021 $ 110,000 92,800 112,500 18,400 310,000 -50,000 593,700 2020 $ 38,400 35,000 102,850 14,000 282,500 -52,000 420,750 Assets Cash at bank Accounts Receivable Inventory Prepaid Expenses Machinery and Equipment Less: Accumulated Depreciation Total Assets Liabilities Accounts Payable Accrued Expenses Notes payable Total Liabilities Shareholders' Equity Share Capital Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 92,000 16,700 125,000 233,700 67,300 17,000 130,000 214,300 126,000 234,000 360,000 593,700 101,000 105,450 206,450 420,750 The Income Statement of Tyler Ltd for the financial year ended 30 June 2021 is provided below: 372,000 Tyler Ltd Income Statement for the year ended 30 June 2021 $ Sales Less: Cost of sales 130,460 Depreciation Expense 46,500 Other Operating Expense 27,410 Loss on sale of equipment 7,500 Total Expenses Profit 211,870 160,130 Additional Information: 1. New machinery was purchased for cash during the year. No sale of machinery took place during the year. 2. Equipment having an original cost of $57,500 was sold for cash during the year. Accumulated depreciation of the equipment sold was $48,500 at the point of sale. 3. Cash dividend was declared and paid during the year. 4. Additional shares were issued for cash during the year. 5. All sales and purchases were made on credit throughout the year ending 30 June 2021. 6. Accounts Payable reflects inventory purchases on credit from suppliers. REQUIRED: (a) Prepare a fully classified Statement of Cash Flows for Tyler Ltd for the year ended 30 June 2021, using the direct method to present cash flows. (b) The cash return on sales ratio is a profitability ratio and is one of the important cash based ratios that can be used to evaluate an entity. Calculate the cash return on sales ratio for Tyler Ltd and comment on the profitability of Tyler Ltd for the year ending 2021. (A formulae sheet is provided at the end of this assessment paper)