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Part A - Section 1 : Preparation of Cash flow statements reconstructive and indirect method ( AAB 1 0 7 ) SydVic Ltd s comparative

Part A - Section 1: Preparation of Cash flow statements reconstructive and indirect method (AAB107)
SydVic Ltds 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.
SydVic Ltd
Comparative Statements of Financial Position As at 30 June
2021
2020
ASSETS
Cash at bank
$ 35000
$ 21000
Bank bills
5000
4300
Deposits at call
3200
2500
Accounts receivable
24650
18900
Allowance for doubtful debts
(1250)
(950)
Inventory
47100
48300
Prepaid expenses
5400
2100
Interest receivable
800
900
Share investments
17800
33.900
Land
35000
35000
Buildings
180000
120000
Accum. depreciation - buildings
Equipment
(52200)
(47250)
90000
77400
Accum. depreciation - equipment
(28950)
(34800)
Patents (indefinite life)
7200
6100
$368750
$287400
LIABILITIES AND EQUITY
Accounts payable
Trade bills payable
Expenses payable
Interest payable
49260
46280
1000
700
4890
4170
2000
1500
Current tax liability
7200
7500
Final dividend payable
17400
16000
Mortgage loan
20000
Debentures (10%)
96500
85000
Share capital (ordinary shares, issued at $1)
147720
92450
Retained earnings
22780
33800
$368750
$287400
SydVic Ltd
Statement of Profit or Loss and other Comprehensive Income For year ended 30 June 2021
INCOME
$693000
Sales
2180
Interest income
3600
Dividend income
1050
Discount received
11300
Gain on sale of share investments
711130
EXPENSES
Cost of sales
$466000
Bad debts expense
1400
Loss on sale of equipment
800
Depreciation equipment
5250
Depreciation buildings
4950
Discount allowed
475
Interest expense
9200
Other expenses
209475
697550
Profit before income tax
13580
Income tax expense
7200
PROFIT
$ 6380
Additional information
1. New equipment was purchased at a cost of $33700, paid in cash.
2. Equipment that cost $21100 and had a carrying amount of $10000 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 $16100 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 SydVic 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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