Cash flow indirect method using IAS7 format

40 Environmental provision Current liabilities 127 119 Trade payables 85 98 Bank overdraft 120 110 Taxation 1,222 948 Total equity and liabilities The following information is available: i. The proceeds of the sale of non-current asset investments amounted to P30,00 ii. Fixtures and fittings, with an original cost of P85,000 and a net book value of P45,000, were sold for P32,000 during the year. iii. The following information relates to property, plant, and equipment 12/31/20X2 12/31/20X1 P'000 P'000 720 595 Cost Accumulated depreciation (340) (290) Net book value 380 305 iv. On Dec. 31, 20X2, Alexis Corp purchased a chalk quarry from which extraction will take place for five years. At the end of that time Alexis Corp will be obliged to close off the quarry and make the area safe. The cost of this has been estimated and discounted to a present value of P40,000, which is included in the carrying amount of the quarry and shown as a provision. V . 50,000 P1 ordinary shares were issued during the year at a premium of 20c per share . vi. The short-term investments are highly liquid and are close to maturity. vii. Dividends of P80,000 were paid during the year. laid out in IAS 7. Required. Prepare a statement of cash flows for the year to Dec. 31, 20X2 using the formatSet out below are the financial statements of Alexis Corp.: STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED DEC. 31, 20X2 P'000 Revenue 2,553 Cost of sales (1,814) Gross profit 739 Other income: interest received 25 Distribution costs (125) Administrative expenses (264) Finance costs (75) Profit before tax 300 Income tax expense (140) Profit for the year 160 STATEMENTS OF FINANCIAL POSITION AS AT DEC. 31 20X2 20X1 Assets P'000 P'000 Non-current assets Property, plant, and equipment 380 305 Intangible assets 250 200 Investments 25 Current assets Inventories 150 102 Receivables 390 315 Short-term investments 50 Cash in hand 2 1 Total Assets 1,222 948 20X2 20X1 Equity and liabilities P'000 Equity P'000 Share capital (P1 ordinary shares) 200 150 Share premium account 160 150 Revaluation surplus 100 91 Retained earnings 260 180 Non-current liabilities Long-term loan 130 50