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 $6 583 000 $4 000 000 893 000 880 000 27 000 Cost of sales Depreciation expense Loss on sale of machinery Profit before income tax Income tax expense Profit 5800 000 783 000 353 000 $430 000 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 $130 ooo 610 000 867 000 501 000 106 000 $672 o00 775 000 834 000 521 000 103 000 3 020 000 1 647 00o 1 200 000 1 500 000 330 000 Cash Accounts receivable Accounts payable Provision for warranty Machinery Accumulated depreciation Loan payable Share capital Retained earnings 2 400 000 800 000 1 000 000 1 500 000 100 00 REQUIRED a Prepare the statement of cash flows using the direct method. b. Prepare the reconciliation of profit and cash provided by operating activities