#03: 2+08=10 a) Briefly discuss some significant noncash activities in accordance with IAS 7. b) Kalatia Company's balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Current Assets Cash Accounts receivable Inventory Prepaid expense Non-Current Assets Plant assets Accumulated depreciation Investment in Bhaluka Company Land Machinery Total assets Liabilities and Stockholders' Equity: Current Liabilities Year 2 Year 1 Tk. 4,000 250,000 Tk. 21,000 170,000 310,000 260,000 7,000 14,000 510.000 400.000 (136,000) (120,000) 0 40,000 200.000 140.000 140,000 200,000 Tk. 1,285,000 Tk. 1,125,000 Accounts payable Accrued liabilities Tk. 305,000 20,000 Tk. 250,000 32,000 Income taxes payable Bonds payable Stockholders' Equity: Common stock 45,000 40,000 Non-Current Liabilities 150,000 110,000 640,000 610,000 Retained earnings 125,000 83,000 Total Liabilities and stockholders' equity Tk.1285,000 Tk.1125,000 Additional information: 1. Net income for the year Tk. 34,000. 2. Equipment that had cost Tk. 40,000 and on which there was accumulated depreciation of Tk. 30,000 was sold during the Year 2 for Tk. 8,000. 3. Company purchased new equipment costing Tk. 150,000 for cash. 4. Bonds payable were issued for cash Tk. 40,000. 5. The company declared and paid cash dividend during Year 2 for. 6. Stock was issued for cash. 7. Land was purchased in exchange of machinery. 8. Investment was sold at face value. Required: Prepare a statement of cash flows for Year 2 using indirect method. The End