The management of Trucks Ltd, a transport business, wants to get a report from the accountant on the cash provided from various activities. The accountant has provide you the following information for the financial year ended 30 June 2016 Item $ Interest paid 3,000 Dividends paid to Shareholders 20,000 Profit after tax for year ended 30/6/2016 100,000 Cash at bank at July 1, 2015 1,000,000 Depreciation for the year 50,000 Payment for Motor vehicle purchased on 28thApril 2016 40,000 Loan repayments made 60,000 Taxes paid to the Tax Office 76,000 Payments to employees 100,000 Cash received from the sale of machinery 100,000 Cash sales 650,000 Dividend received 240,000 Investments in companies listed on the ASX (Australia Security Exchange) 56,000 Cash received from accounts receivable 550,000 Bad Debts expense 10,000 Payments to suppliers 500,000 Credit sales for the year 750,000 Money borrowed from Net bank 250,000 Purchase of property and land for cash 800,000 REQUIRED (a)Prepare a fully classified cash flow statement for the year ended 30th June 2016 for Trucks Ltd. (b)Trucks Ltd management is confused in that their Income Statement is indicating they made a net loss (negative profit) over the same period whilst reporting a positive cash inflow from operations. Assuming both reports are accurate explain to Truck management providing two possible reasons why this discrepancy could occur when comparing cash flow from operations (cash profit) with accrual accounting profit / loss. For each cause identified highlight the impact on Assets = Liabilities + Owners Equity and profit versus cash flow (80 word limit) (c)Given the above differences discuss which statement (Income Statement or Cash Flow from Operations) better reflects the financial performance / wealth creation for the period ending 31 December 2016. (Justify your answer with reference to accrual accounting) (80 word limit)