You are given below, in summarised form, the accounts of Algernon, an entity, for 20X6 and 20X7. 31 December 20X6 31 December 20X7 Cost Dep'n $ $ 10,000 4,000 Plant Buildings 50,000 10,000 Investments at cost Land Inventory Receivables Bank Ordinary shares of $1 each Share premium Revaluation surplus (land) Retained earnings 10% Loan notes Payables Bank CA $ 6,000 40,000 46,000 50,000 43,000 55,000 40,000 3,000 237,000 40,000 12,000 45,000 100,000 40,000 237,000 CCA Globa Cost Dep'n $ $ 11,000 5,000 90,000 11,000 XOC CA $ 6,000 79,000 85,000 80,000 63,000 65,000 50,000 343,000 50,000 14,000 20,000 45,000 150,000 60,000 4,000 343,000 Statement of profit or loss for the years ended 31 December: 20X6 20X7 $ $ Sales 200,000 200,000 Cost of sales (100,000) (120,000) 100,000 80,000 Expenses (50,000) (47,000) 50,000 33,000 Interest (10,000) (13,000) G Net profit for year 40,000 20,000 Notes: A $20,000 dividend has been paid in the year. Required: (a) Prepare a statement of cash flows for Algernon for the year ended 31 December 20X7, to explain as far as possible the movement in the bank balance. The statement of cash flows should be prepared using the direct method. B