An income statement and a comparative balance sheet for Borachio Ltd are as follows: 

The following additional information during the year was obtained from an examination of the ledger: 

a. A parcel of land with an original cost of $60 000 was sold. 

b. All sales over the year are made on credit. 

Required: 

1. Prepare a statement of cash flows (direct method) for the year ended 30 June 2019. 

2. Prepare a reconciliation statement (indirect method) for the year ended 30 June 2019.

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BORACHIO LTD COMPARATIVE BALANCE SHEET AS AT 30 JUNE 2019 AND 2018 Cash Accounts receivable Allowance for doubtful debt Inventory Prepaid insurance Long-term investments Land Equipment Accumulated depreciation - equipment Total assets Accounts payable Accrued expenses Interest payable Income tax payable Final dividends payable Bonds payable Share capital Retained earnings Total liabilities and shareholders' equity 2019 $000 162 145 (16) 175 9 205 172 449 (214) 1 087 87 27 9 44 16 100 490 314 1 087 2018 $000 144 128 (12) 190 6 163 149 437 (149) 1 056 51 11 9 23 12 250 420 280 1 056