The following data relate to Emporium Ltd:

Emporium Ltd

Income statement

for year ended 30 June 2020Income

Sales revenue$1,245,000ExpensesCost of sales$720,000Depreciation machinery30,000Depreciation buildings18,000Other expenses335,5001,103,500Profit$141,500

Emporium Ltd

Comparative statements of financial position

as at 30 June20192020AssetsCash at bank$57,000$56,000Accounts receivable145,000134,000Inventory112,000152,000Investments19,00023,000Machinery (net)220,000295,000Buildings (net)120,000207,000Land63,500147,500$736,500$1,014,500Liabilities and equityAccounts payable$45,700$60,700Expenses payable6,3002,800Mortgage payable135,000223,000Share capital375,000453,000Retained earnings

174,500275,000$736,500$1,014,500

Additional informationa)Dividends were paid during the year.

b)The increases in investments and machinery were from cash purchases.c)The increases in land and buildings were from purchases but were partly funded by an increase in the mortgage with the bank.d)Share capital was issued during the year for cash.

Prepare the note reconciling cash flows from operating activities to profit.