Tulloch Ltd’s comparative statements of financial position and statement of profit or loss and other comprehensive income for the year ended 30 June 2018 are shown on pages 000–00.

Additional information

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

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

(c) Additions to buildings were partly funded by a mortgage loan.

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

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

(f)  The company was given permission to pay income tax in one instalment.

(g) 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 2018 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 2018.

	tulloch LTD Comparative Statements of Financial Position as at 30 June
			2018		2017
	Assets Cash at bank Bank bills Deposits at call Accounts receivable Allowance for doubtful debts Inventory Prepaid expenses Interest receivable Share investments Land Buildings Accum. depreciation – buildings Equipment Accum. depreciation – equipment Patents (indefinite life)		$   35 000 5 000 3 200 24 650 (1 250) 47 100 5 400 800 17 800 35 000 180 000 (52 200) 90 000 (28 950)    7 200		$  21 000 4 300 2 500 18 900 (950) 48 300 2 100 900 33 900 35 000 120 000 (47 250) 77 400 (34 800)   6 100
			$368 750		$287 400
	Liabilities and equity Accounts payable Trade bills payable Expenses payable Interest payable Current tax liability Final dividend payable Mortgage loan Debentures (10%) Share capital (ordinary shares, issued at $1) Retained earnings		$  49 260 1 000 4 890 2 000 7 200 17 400 20 000 96 500 147 720    22 780		$ 46 280 700 4 170 1 500 7 500 16 000 — 85 000 92 450    33 800
			$368 750		$287 400

	tulloch LTD Statement of Profit or Loss and Other Comprehensive Income for year ended 30 June 2018
	INCOME Sales Interest income Dividend income Discount received Gain on sale of share investments				$693 000 2 180 3 600 1 050     11 300
					711 130
	expenses Cost of sales Bad debts expense Loss on sale of equipment Depreciation – equipment Depreciation – buildings Discount allowed Interest expense Other expenses		$466 000 1 400 800 5 250 4 950 475 9 200 209 475		697 550
	Profit before income tax Income tax expense				13 580    7 200
	Profit				$   6 380