Tulloch Ltd’s comparative statements of financial position and statement of profit or loss and other comprehensive income for the year ended 30 June 2021 are shown below.

Additional information

1. New equipment was purchased at a cost of $33 700, paid in cash.

2. Equipment that cost $21 100 and had a carrying amount of $10 000 was sold for cash.

3. Additions to buildings were partly funded by a mortgage loan.

4. Debentures were issued at nominal value ($50) for cash.

5. Share investments with a carrying amount of $16 100 were sold for cash at a profit.

6. The company was given permission to pay income tax in one instalment.

7. No interim dividends were paid during the year.

Required

(a) Prepare the statement of cash flows for Tulloch Ltd for the year ended 30 June 2021 in accordance with AASB 107, using the classifications shown in illustrative example A to the standard.

(b) Prepare the note showing the reconciliation of net cash from operating activities to profit for the year ended 30 June 2021.

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TULLOCH LTD Comparative Statements of Financial Position as at 30 June 2021 ASSETS Cash at bank Bank bills Deposits at call $ 35.000 2020 $ 21000 5000 Accounts receivable Allowance for doubtful debts Inventory Prepaid expenses Interest receivable 3200 24 650 (1250) 47 100 5400 800 4300 2500 18900 (950) 48 300 2100 900 Share investments 17 800 33 900 Land 35000 35 000 Buildings 180 000 120 000 Accum. depreciation - buildings (52 200) (47 250) Equipment 90 000 Accum. depreciation - equipment Patents (indefinite life) $368 750 (28 950) 7200 $287 400 77 400 (34 800) 6100 LIABILITIES AND EQUITY Accounts payable Trade bills payable Expenses payable Interest payable 49 260 46 280 1000 700 4890 4170 2000 1500 Current tax liability 7200 7500 Final dividend payable 17 400 16000 Mortgage loan 20 000 Debentures (10%) 96 500 85 000 Share capital (ordinary shares, issued at $1) 147 720 92 450 Retained earnings 22 780 33 800 $368 750 $287 400