6391/mod_resource/content/2/ACC2107020S1%20EX % 20202021.pdf 12-4PM Question 1: a. SECTION A: ANSWER ALL QUESTIONS The financial statements of Virtual Limited are given as follows: Virtual Limited Statement of financial position as at 31 December: 2020 2019 Non-current assets Property plant and equipment cost 220,000 Property plant and equipment accum depreciation (92,000) 128,000 Current assets Inventory Trade receivables Government bonds Bank Total assets 180,000 (78,000) 102,000 17,000 12,000 10,000 2,000 10,000 10,000 16,000 3,000 53,000 27,000 181,000 129,000 Equity and liabilities Equity Share capital ($1) 65,000 45,000 Share premium 12,000 10,000 Retained earnings 68,000 24,000 145,000 79,000 Non-current liabilities 10% loan note 20,000 30,000 Current liabilities Trade payables Taxation Total equity and liabilities 13,000 3,000 19,000 1,000 16,000 20,000 181,000 129,000 Virtual Limited Statement of comprehensive income (extract) for the year ended 31 December 2020: $ Profit before interest and tax 52,000 Finance costs (2,000) Taxation expense (6,000) Profit for the year 44.000 Required: Prenare a statement of cashflows for Virtual Limited under the Indirect Method as per IAS 7 (12 marke E P W Trade payab Taxation Total equity and liabilities 3,000 1,000 16,000 20,000 181,000 129,000 Virtual Limited Statement of comprehensive income (extract) for the year ended 31 December 2020: Profit before interest and tax 52,000 Finance costs (2,000) Taxation expense Profit for the year (6,000) 44,000 Required: Prepare a statement of cashflows for Virtual Limited under the Indirect Method as per IAS 7. (12 marks) b. Page 2 of 5 Explain and differentiate between the Direct and Indirect method of cashflow preparation as per IAS 7