Vaccination Ltd has provided you with the following information: As at or for the year ended 31 March: Sales- Credit 2022 S 2021 S Operating expenses Interest expense Cost of goods sold Tax expense Sales - Cash Depreciation expense 200 000 56 000 61 240 82 150 000 6 200 2 400 Accounts receivable 42 000 30 000 Inventory 13 000 12 000 Equipment at cost 94 070 48 000 Accumulated depreciation 18 200 12 000 Accounts payable 16 390 17 180 Dividends payable 16 270 Bank overdraft 13 670 288 Long-term borrowings 2 200 2 000 Share capital 60 000 50 000 Retained earnings 22 340 8 532 Additional information: 1. Vaccination Ltd uses the direct method of reporting cash flows from operating activities. 2. The entity classifies interest expense as a cash flow from financing activities and dividends paid as a cash flow from financing activities. 3. A long-term borrowing repayment of $400 was made during the financial year. 4. Multiple items of equipment were purchased during the financial year; one item purchased at year end cost $4 000. Required: (i) Prepare a Statement of Cash Flows for Vaccination Ltd, in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2022. GST is not applicable. You are required to reconstruct all the general ledger accounts provided in the answer booklet. (ii) Determine the dollar effect on cash flows from financing activities if the entity had classified dividends paid as a cash flow from operating activities and not as a cash flow from financing activities. Question 2 continued: (iii) Determine the dollar effect on cash flows from operating activities if the entity had classified dividends paid as a cash flow from operating activities and not as a cash flow from financing activities. QUESTION 2 (i) Vaccination Ltd Statement of Cash Flows for the year ended 31 March 2022 Cash flows from operating activities: Cash generated from operations Net cash (used)/from operating activities Cash flows from investing activities: Net cash flow (used in)/from investing activities Cash flows from financing activities Net cash flow (used in)/from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Check: (ii) The dollar effect on cash flows from financing activities would be: (iii) The dollar effect on cash flows from operating activities would be: QUESTION 2 (i) General ledger accounts: Share capital $ $ RES Equipment $ $ $ $ QUESTION 2 (i) General ledger accounts continued: Accumulated depreciation $ Dividends payable $ Accounts receivable $ Accounts payable $ $ $ $ $ Inventory $ $ LTB $