The comparative statement of financial position and the statement of profit or loss of LAURELINE Ltd for the year ended 30 June 2017 are as follows:

Additional information in relation to the year ended 30 June 2017: a) There were no cash sales during the year. b) Bad debts written off during the year amounted to $72 000 c) 30-day cash deposits are used in the course of the daily cash management of the company d) There is an upward asset revaluation by $120 000 of land during the year and the deferred tax liability component is $48 000. e) Plant comprised: original cost $240 000, accumulated depreciation $168 000 was sold for $72 000 during the year. f) The accounts payable account is used for inventory. g) Income tax expense of $208 000 comprises current tax payable component of $218 000 and a deferred tax asset component of $10 000 h) Accrued expenses relate to salaries and lease rentals. i) The tax rate is 40%. j) Land with a fair value of $240 000, was acquired during the year through the issue of 240 000 fully paid shares. Required 1. Prepare working papers showing separately all calculations to determine cash flows from each of the operating, investing and financing activities required to be disclosed under AASB 107 using the direct method. Use of T accounts or equations is acceptable; 2. Prepare the Statement of Cash Flows for LAURELINE Ltd for the year ending 30 June 2017 in accordance with AASB 107. Comparatives are not required 3. Provide a reconciliation of net profit after tax with net cash provided by operating activities in accordance with AASB 1054.

Statement ofFinancial Position as at 30 June 2017 2 Cash at bank Allowance for doubtful debts Current liabilities Accounts payable Long Tem Borrowings Deferredtax liability Total liablitie andequity