EXERCISE 5: THE ADJUSTMENTS IN NON-CASH WORKING CAPITAL ACCOUNTS AND THE STATEMENT OF CASH FLOWS With the following financial statements, prepare the adjustments in non-cash working capital accounts statement, and the statement of cash flows. Revenue Cost of sales Grow profit Other income Costs/expenses Total Profit before taxes Income tax expense Profit for the year Statement of Income For the year ended December 31, 2013 (in s) 550,000 (200,000) 350,000 10,000 (210.000) 200.000 150,000 (60,000) 90,000 2012 Statement of Changes in Equity For the year ended December 31 (in S) 2013 Retained Earnings Balance at beginning of year 210,000 Profit for the year 90,000 Dividends (70,000) Balance at end of year 230,000 Share Capital Balance at beginning of year 71,000 Shares issued Balance at end of year 71,000 210,000 210,000 71.000 71.000 Statements of Financial Position As at December 31 (in 5) 2013 Non-current assets Property, plant, and equipment 400,000 Accumulated depreciation (100,000) Property, plant, and equipment, net 300,000 2012 350,000 (65.000) 285,000 300.000 250,000 3,000 553,000 853,000 230,000 200.000 4,000 434,000 719,000 71,000 230,000 301,000 71.000 210,000 281,000 Current assets Inventories Trade receivables Cash and cash equivalents Total current assets Total assets Equity Share capital Retained earnings Total equity Liabilities Non-current liabilities Long-term borrowings Current liabilities Trade and other payables Accrued expenses Short-term borrowings Total current liabilities Total liabilities Total equity and liabilities 200,000 122,000 200,000 32,000 120,000 352.000 552.000 853,000 178,000 38,000 100,000 316,000 438,000 719,000