The accounting records of Jason Johnson Company provided the data below for years ending 30 June 2022 and 30 June 2021:

2022 2021

$ $

Sales (all on credit) for the year 950,000

Cost of goods sold for the year 380,000

Discount provided to customers for early payment 3,500

Bad debts expense for the year 2,500

Depreciation expense 55,000

Net profit 509,000

30 June 2022 30 June 2021

$ $

Accounts receivable 160,000 140,000

Less: Allowance for doubtful debts 4,500 4,200

155,500 135,800

Inventory 88,360 62,200

Accounts payable 55,500 47,700

Required:

Based on the information given, prepare the section of cash flows statement for net cash flows from operating activities for the year ended 30 June 2022 for Jason Johnson company. Show your calculations for each item included in the section of the statement. (5 marks)

Prepare a reconciliation of net profit to net cash flows from operating activities. (5 marks)