CASH FLOW STATEMENTS. EXERCISE 2. COMPANY XYZ Analyze the statement of Cash Flows for XYZ 2012 2013 Cash and cash equivalents provided by (used in): Operating activities Net loss for the year (12,797) (8,908) (Increase) decrease in restricted cash Items not affecting cash: Loss on disposal of assets Amortization and depreciation Other finance losses, net (note 17) |(1,607) 1,758 7 712 870 2,065 438 Unrealized foreign exchange (gains) losses Stock-based compensation (note 13) Portion of borrowings recorded as a reduction from research and product development expenses or fixed assets (note 11) (120) (257) 577 631 (934) (981) Accreted non-cash interest (note 11) 349 288 Payment of post-retirement benefit liability (note 11) Liabilities for compensation indexed to share price Net change in non-cash working capital (note 25) Cash used in operating activities (97) (100) 4,223 768 (8,879) 11,631 (9,197) (1,163) Investing activities Proceeds from disposal of property, plant and equipment Purchase of property, plant and equipment Purchase of intangible assets Cash used in investing activities Financing activities Payment of repayable government contributions (note 11) Proceeds of borrowings, net of transaction costs (note 11) Proceeds of operating borrowings Repayment of operating borrowings Common shares issued and warrants exercised, net of issuance costs (note 12) Cash provided by financing activities Effect of exchange rate fluctuations on cash and cash equivalents held Increase (decrease) in cash and cash equivalents during the year Cash and cash equivalents - Beginning of year 26 (424) (939) (2) (32) (971) (400) (393) (308) 1,782 1,621 1,412 1,182 (1,412) (1,182) 5,178 7,280 8,669 6,491 307 302 (1,197) 5,235 13,020 7,785 $ 13,020 Cash and cash equivalents - End of year 11,823 December 31, 2016 2015 Cash $3,300 $1,000 Accounts receivable (net) 1,100 600 4,300 Inventory 11,200 $ 5,900 $2,300 Total Current Assets $15,600 Plant and equipment Less accumulated depreciation Plant and equipment (net) Long-term investments $3,000 (1,300) (800) $1,500 $ 1,700 1,200 900 $ 8,300 Total Assets $18,500 Accounts payable $3,300 $2,500 Accrued liabilities 700 600 Income taxes payable 400 100 $ 4,400 $3,200 Total Current Liabilities Long-term debt 200 $ 4,600 $3,200 Total Liabilities Common stock ($1 par) and additional paid-in capital Retained earnings Total Liabilities and Equity 9,900 7,300 (2,200) $ 8,300 4,000 $18,500 Income Statement for 2016 $94,000 Sales Cost of goods sold Gross profit Selling and administrative Depreciation Operating profit Interest expense 55,000 $39,000 $28,800 500 29,300 $ 9,700 100 Earnings before tax Tax expense $9,600 3,400 $ 6,200 Net income CASH FLOW STATEMENTS. EXERCISE 2. COMPANY XYZ Analyze the statement of Cash Flows for XYZ 2012 2013 Cash and cash equivalents provided by (used in): Operating activities Net loss for the year (12,797) (8,908) (Increase) decrease in restricted cash Items not affecting cash: Loss on disposal of assets Amortization and depreciation Other finance losses, net (note 17) |(1,607) 1,758 7 712 870 2,065 438 Unrealized foreign exchange (gains) losses Stock-based compensation (note 13) Portion of borrowings recorded as a reduction from research and product development expenses or fixed assets (note 11) (120) (257) 577 631 (934) (981) Accreted non-cash interest (note 11) 349 288 Payment of post-retirement benefit liability (note 11) Liabilities for compensation indexed to share price Net change in non-cash working capital (note 25) Cash used in operating activities (97) (100) 4,223 768 (8,879) 11,631 (9,197) (1,163) Investing activities Proceeds from disposal of property, plant and equipment Purchase of property, plant and equipment Purchase of intangible assets Cash used in investing activities Financing activities Payment of repayable government contributions (note 11) Proceeds of borrowings, net of transaction costs (note 11) Proceeds of operating borrowings Repayment of operating borrowings Common shares issued and warrants exercised, net of issuance costs (note 12) Cash provided by financing activities Effect of exchange rate fluctuations on cash and cash equivalents held Increase (decrease) in cash and cash equivalents during the year Cash and cash equivalents - Beginning of year 26 (424) (939) (2) (32) (971) (400) (393) (308) 1,782 1,621 1,412 1,182 (1,412) (1,182) 5,178 7,280 8,669 6,491 307 302 (1,197) 5,235 13,020 7,785 $ 13,020 Cash and cash equivalents - End of year 11,823 December 31, 2016 2015 Cash $3,300 $1,000 Accounts receivable (net) 1,100 600 4,300 Inventory 11,200 $ 5,900 $2,300 Total Current Assets $15,600 Plant and equipment Less accumulated depreciation Plant and equipment (net) Long-term investments $3,000 (1,300) (800) $1,500 $ 1,700 1,200 900 $ 8,300 Total Assets $18,500 Accounts payable $3,300 $2,500 Accrued liabilities 700 600 Income taxes payable 400 100 $ 4,400 $3,200 Total Current Liabilities Long-term debt 200 $ 4,600 $3,200 Total Liabilities Common stock ($1 par) and additional paid-in capital Retained earnings Total Liabilities and Equity 9,900 7,300 (2,200) $ 8,300 4,000 $18,500 Income Statement for 2016 $94,000 Sales Cost of goods sold Gross profit Selling and administrative Depreciation Operating profit Interest expense 55,000 $39,000 $28,800 500 29,300 $ 9,700 100 Earnings before tax Tax expense $9,600 3,400 $ 6,200 Net income