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Using the information below, complete (i) the operating cash flow section of the Statement of Cash Flows and (ii) the note to the accounts for

Using the information below, complete (i) the operating cash flow section of the Statement of Cash Flows and (ii) the note to the accounts for Trader Ltd. Your presentation must be consistent with the requirements of AASB107 .

The balances of selected accounts of Trader Ltd at 30 June 2019 and 30 June 2020 were ($000):

2019

2020

Sales (on credit)

7850

6380

Cost of goods sold

1450

1100

Doubtful debts expense

295

325

Rent expense

550

470

Salaries expense

830

740

Depreciation expense

290

180

Cash

3000

1100

Inventory

3800

4500

Accounts receivable

2200

3700

Allowance for doubtful debts

340

280

Land

4000

4000

Plant

2750

2800

Accumulated depreciation

490

450

Accounts payable

3200

3500

Rent payable

100

30

Salaries payable

120

90

Share capital

1000

1000

Additional information:

  • net profit after tax for financial year 2020 was $ 3565.
  • reporting date is 30 June.

Required:

(i) Trader Ltds operating cash flow section extracted from the Statement of Cash Flows for year ended 30 June 2020

(ii) Reconciliation of net cash by operating activities to net profit

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