Haas Company is a manufacturing firm.
Required
€¢ With the help of the following balance sheet, income statement, statement of retained earnings and additional information, prepare a statement of cash flows for the year X2 using the direct method.
€¢ Prepare a separate statement reconciling the net income and the net cash provided by/used in operating activities. This statement represents the application of the indirect method in calculating the cash flow from operating activities.
Haas Company €“ Comparative balance sheets
(000 CU) €“ Years ended 31 December X2 and X1

* Related to other operating expenses
Haas Company - Income statement (000 CU)€”
Year X2

Haas Company €“ Statement of retained earnings
(000 CU) €“ Year ended 31 December X2
Retained earnings (at end of Year X1) 130
Net income of Year X2 123
Dividends paid during Year X2€“ 40
Retained earnings (at end of Year X2) 213
The following additional information is also relevant for the preparation of the statement of cash flows for the year X2 (all monetary figures in 000 CU):
€¢ Equipment with an original cost of 50 and accumulated depreciation of 30 was sold for 15.
€¢ A new loan was granted. No loan was repaid.
€¢ 80 were raised from the issue of shares in cash (share capital of 50 plus share premium of 30).
€¢ Some bonds were repaid at maturity; they had a total face value of 70.

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X1 Changes (X2-X1) Current assets Prepaid expenses Inventories 2 Total current assets Financial assets (loans) Equipment net) Total fixed assets Total assets X2 X2-X1) Shareholders' equity and liabilities Liabilities Current liabilities Trade aocounts payable Income taxes payable Total current labilities Long-term liabilities 136 40 176 160 135 35 170 180 20 bonds) Totai liabilities Shareholders' equity Share capital Share premium Retained earnings/ 336 350 300 150 213 250 120 130 50 30 83 Reserves Total shareholders 663 500 163 equity Total shareholders' equity and liabilities 999 850 149 Sales Cost of goods sold Gross profit Depreciation expense Other operating expenses Operating profit Interest expense Investment income Loss on sale of equipment Profit before taxes Income taxes Net profit 1,000 -150 190 - 18 16 183 123