Question 1(11 marks) 1. Using the information below for ABC Pty Ltd, prepare a statement of cash flowsfor the year 2021 using the direct method. 2. Briefly provide an interpretation of the statement of cash flows Sales revenue Cost of Goods Sold Gross profit Expenses: Wages Utilities Insurance. Rent Depreciation Interest ABC Pty Ltd I Income statement for the year ended 31 December 2021 $545,350 (387,140) 108,780 Supplies Loss on sale of Equipment Profit before tax Income tax expense Profit for the period 158,210 58,400 5,600 4,800 12,000 14,200 980 10,800 2,000 49,430 13,929 $ 35,501 ABC Pty Ltd Balance sheet As at 31 December 2021 2020 2021 2020 Current assetsCurrent liabilities Cash $ 13,271 $4,250 Accounts receivable inventory 104,240 Supplies 122,840 Interest payable Accounts payable 68,240 126,820 120,340 Wages Payable 84,200 12,380 Merchandise 4,890 3,450 Loans payable (current)10,00010,000 Prepaid rent 980 12,000 12,000 79,220 106,580