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LO4, 5, 6 20 Prepare a statement of cash flows using the indirect method The balance sheets for the Intelligence Company are as follows: Comparative balance sheets as at 30 June 2022 2021 $ 65000 Cash and cash equivalents $ 45000 Accounts receivable 50000 55000 Inventory 125000 175000 Property, plant and equipment Accumulated depreciation 930000 745 000 (270000) (200 000) Page 231 $900 000 $820000 Total assets Accounts payable $110000 $105000 200000 180000 Unsecured syndicated bank loan (long-term) $290 000 Total liabilities $305000 Ordinary shares $350000 $280000 260000 Retained earnings 235000 Total shareholders' equity 610000 515000 $900 000 $820000 Total liabilities and shareholders' equity The following additional information is available: iProfits after tax for 2022 were $50000. Cash dividends of $25000 were paid during the year i ii A portion of unsecured syndicated bank loan matured and was repaid during the year iv Ordinary shares were issued for cash. v Property and equipment were purchased for cash. No non-current assets were sold during the year vi The change in accumulated depreciation is a result of depreciation expense REQUIRED Prepare a statement of cash flows for the year using the direct method for the operating activities section and prepare a reconciliation of profits after tax to cash flow from operations

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