The statement of profit or loss for Kosinski Manufacturing Ltd contains the following condensed information: KOSINSKI MANUFACTURING LTD Statement of profit or loss for the year ended 31 December 2016 Revenues Cost of sales Operating expenses, excluding depreciation Depreciation expense Loss on sale of machinery Profit before income tax Income tax expense Profit 56 583 000 $4 000 0oo 893 000 880 000 5800000 783 000 ?S100? Machinery was purchased at a cost of $750 000. The following balances are reported on Kosinski's 2016 statement of financial position at 31 December: 2016 2015 Cash Accounts receivable Inventories Accounts payable Provision for warranty Machinery $672 000 775 000 834 000 521 000 03 000 3 020 000 1647 000 1 200 000 1 500 000 330 000 S130 000 610 000 867 000 501 000 106 000 2 400 000 800 000 1 000 000 1 500 000 100 000 Loan payable Share capital Retained earnings REQUIRED a Prepare the statement of cash flows using the direct method b Prepare the reconciliation of profit and cash provided by operating activities