Thakholi pty ltd Statement of profit or loss and comprehensive income for the year ended 31^st December 2019 (M000)

Revenue 1800 Cost Of Sales (1000) Gross Profit 800 Distribution Costs (170) Administrative Expenses (250) Loss on disposable of a non current asset (15) Profit from Operations 365

Finance Cost (120) Profit Before tax 245 Tax Charge (61) Profit for the year 184

Thakholi pty ltd statement of financial position as at 31^st December 2019

ASSETS	M'000		M'000
Non -current assets
Property ,plant and equipment	1,580		1,320
	1,580		1,320
Current assets
Inventories	1,270		900
Trade and other receivables	642		1,000
Prepayments	320		-
Cash and cash equivalents	1,100		1,350
Total assets	4,912		4,570
EQUITY AND LIABILITIES
EQUITY
Share capital	1,575		1,457
share premium	800		244
Retained earnings	977		743
Revaluation reserves	50		70
	3,402		2,514

Non current liabilities
Long term loans	648		763
Current liabilities
Trade and other payables	642		869
Accruals	130		278
Tax liability	90		146
Total liabilities	862		1,293
Total Equity and Liabilities	4,912		4,570

1. There was an impairment of M 24,000 on the inventory value during the year
2. Depreciation for PPE (property plant and equipment) was M76, 500
3. A non-current asset that was bought for M 96,480 and has been depreciated for M 68,250 was disposed for cash
4. All the dividends of M 328, 500 were paid during the year
5. The entity makes all the purchases and sales on credit
6. All other expenses are on cash basis

Required: a. Reconcile the profit from operations to cash from operating activities for the year ended 31^st December 2019

b.Prepare a cash flow statement for the year ended 31^st December 2019