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Below are the statements of financial position of Brilleaux Ltd as at 30 June 2016 and 2017, and its statement of profit or loss and statement of changes in equity for the year ended 30 June 2017:

	BRILLEAUX LTD Statements of Financial Position as at 30 June
		2017				2016
	Assets Cash at bank Accounts receivable Inventory Prepaid insurance Land Machinery Accumulated depreciation: machinery Total assets	$ $	23 000 33 500 82 000 2 500 40 000 360 000 (81 000 460 000	)		$ $	6 500 37 500 66 000 3 500 44 800 300 000 (67 000 391 300	)
	Liabilities Accounts payable Interest payable Other accrued expenses Long-term borrowings Equity Share capital Retained earnings Total liabilities and equity	$ $	25 000 3 000 7 000 145 000 170 000 110 000 460 000			$ $	22 000 3 400 4 500 120 000 100 000 141 400 391 300

	BRILLEAUX LTD Statement of Profit or Loss for the year ended 30 June 2017
	Income Sales Lease income received Gain on the sale of machinery Less: Expenses Cost of sales Interest expense Loss on the sale of land Depreciation expense Insurance expense Other operating expenses Profit for the year	$ $	420 000 7 500 9 000 281 000 11 500 10 000 22 000 3 500 81 500		$ $	436 500 409 500 27 000

	BRILLEAUX LTD Statement of Changes in Equity for the year ended 30 June 2017
		Share capital		Other reserves		Retained earnings					Total
	Balance at 1/7/16 Profit the period Dividends paid Issue of share capital Balance at 30/6/17	$100 000 70 000 $170 000				$ $	141 400 27 000 (58 400 110 000	)		$ $	241 400 27 000 (58 400 70 000 280 000	)

Additional information

(a) Land with an original cost of $44 800 was sold for cash of $34 800 during the year.

(b) Machinery with a carrying amount of $25 000 (cost $33 000 and accumulated depreciation $8000) was sold for cash of $34 000.

(c) Lease income is earned from leasing part of the land holdings that are in excess to operating needs.

Required

Prepare the statement of cash flows of Brilleaux Ltd for the year ended 30 June 2017 based on the direct method of presentation. Include a note disclosure to reconcile the net cash flows from operating activities with the profit for the year.

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