The financial statements for Rays Ltd for fiscal years 2019 and 2020 are presented below:

Rays Ltd Statement of financial position as at 30 June 2020 2020 (S'000) 2019 (S'000) ASSETS Current assets Cash Accounts receivable 5,500 2,400 -150 3,600 2.000 -80 Allowance for bad debts 3,600 200 3,000 100 Inventory Prepaid insurance Total current assets Non-current assets 11,550 8,620 Land 2,500 3,500 -720 3,100 2,670 -500 Buildings Accumulated depreciation - buildings Plant and equipment Accumulated depreciation - plant & equipment Office equipment Accumulated depreciation - office equipment 5,400 -480 2.900 -600 550 340 -200 -150 Patents 160 160 Accumulated amortisation -60 0 Total non-current assets Total Assets 10,650 22,200 7.920 16,540 LIABILITIES & EQUITY Current Liabilities 2,400 1,350 Accounts payable Accrued expenses Interest payable Income tax payable Dividend payable Total current liabilities 1,900 1,200 200 1,600 350 1,800 900 6,800 500 5,400 Non-current liabilities 8,000 14.800 6,000 11.400 3.100 1,900 Borrowings Total liabilities Equity Share capital Revaluation surplus Retained earnings Total equity Total liabilities and equity 310 200 3,990 7,400 22,200 3,040 5,140 16,540 Rays Ltd Statement of profit or loss for the year ended 30 June 2020 (S'000) Sales revenue Gain from sale of land ($'000) 22,500 350 Loss from sale of plant & equipment 150 18,100 75 300 Less: Expenses Cost of sales Bad debts expense Depreciation expense Insurance expense Interest expense Amortisation expense Other expenses 185 220 60 1800 Profit before income tas 1.960 360 Income tax expense Net profit 1.600 Additional information: 1. Plant and equipment with an original cost of $800,000 were sold for cash during the year. 2. Land with an original value of $600,000 was revalued upwards by $110,000 during the year. 3. Purchase of buildings, plant & equipment, and office equipment were paid on cash. 4. An interim cash dividend was paid during the year. Required: (A) Prepare a statement of cash flows, using the direct method (19 marks). (B) Reconcile profit to cash provided by operating activities (using indirect method) 6 marks)