flows in accordance with IAS 7 for the year ended 31 December 2017 Exercise 17.15 PREPARATION OF A STATEMENT OF CASH FLOWS ** A summarised comparative statement of financial position of Bronze Inc. is presented below, together with a statement of profit or loss and other comprehensive income for the year ended 31 December 2017. 31 Dec 2016 31 Dec 2017 Cash $ 45000 $ 35000 Trade receivables 69 000 105000 Allowance for doubtful debts 130001 Inventory 45000 67000 Investments 53000 601000 Plant 187 000 225000 Accumulated depreciation 35 000 (53000 5361 000 $413000 Accounts payable 65 000 $ 75000 Accrued interest 7000 Current tax payable 15000 18000 Deferred tas 30 000 17 000 Borrowings 80 000 100000 Share capital 100 000 100000 Investment revaluation eve 2000 7 000 Retained earnings 64000 89000 $ 161000 $433000 5000 CHAPTER 17 Statement of cash flows 3 Statement of Profit or loss and Other Comprehensive Income for the year ended 31 December 2017 Sales $1005000 Cost of sales 1774 000 Gross profit 26100 Distribution expenses (760001 Administration expenses (960001 Interest expense Com Profit before tax 82000 Income tax expense 24 000 Profit for the year 58000 Other comprehensive income Gain on revaluation of investments inet of tax) 5000 Total comprehensive income 61000 Additional information (a) The movement in the allowance for doubtful debts for the year comprises: Balance at 31 December 2016 53000 Charge for year 5000 Bad debes written oll (2000) Balance at 31 December 2017 6000 (b) The investments are measured at fair value with gains and losses recognised in other comprehensive income and accumulated in the investment revaluation reserve () There were no disposals of plant during the year. (d) A dividend of $33000 was paid during the year (e) There were no acquisitions or disposals of investments during the year. (1) Bronze Inc. classifies interest as an operating activity Required 1. Using the dire meth of presenting cash flows from operating activities, prepare a statement of cash flows in accordance with IAS 7 for the year ended 31 December 2017 2. Prepare the operating activities section of the statement of cash flows using the indirect method of presentation