Mid Term Question 1'''T'''''' III!!! 3!!!!!! The following information is relevant: 1. Depreciation/amortization charges for the year ended 31 December 2020 were: 1. Property, plant and equipment Intangible asset: manufacturing license Tk. m 115 25 Envoy Textiles Limited is a public listed company. Its summarized financial statements for the years ended 31 December 2020 and the comparative figures are shown below: Statements of comprehensive income for the year ended 31 December 2020 2019 Tk. m Tk. m Revenue 2,700 1,820 Cost of sales (1,890) (1,092) 2. There were no sales of non-current assets during the year. 3. The company declared and paid dividend in the year of 2020 accordingly. Required: Prepare the statement of cash flows for the year ended 31 December 2020 for Tangier in accordance with the indirect method in accordance with IAS 7: Statement of cash flows. Gross profit Distribution costs Administrative expenses Finance costs 810 (230) (345) (40) 728 (130) (200) (5) Explanation notes are mandatory. Total marks- 20 Profit before tax Income tax expense 195 (60) 393 (113) Profit for the year 135 280 2. Short Notes: a. What is the difference between Components of Financial Statements and Elements of Financial Statements? b. Write a short note about "Enron Scandal". Is there any accounting transformation after the Scandal? Please explain 2019 Tk. m Tk. m Total marks- 20 Statements of financial position as at 31 December 2020 Tk. m Tk. m Assets Non-current assets Property, plant and equipment 600 Intangible asset: manufacturing license 300 Investment at cost: shares 230 1,130 Current assets Inventory 200 Trade receivables 195 Bank nil 395 Total assets 1,525 410 200 Nil 610 110 75 120 305 915 Equity and liabilities Equity and Reserve Equity shares of Tk. 1 each Reserves: Retained earnings 350 250 375 725 295 545 100 300 100 Nil 400 100 Non-current liabilities 5% loan notes 10% secured loan notes Current liabilities Bank overdraft Trade payables Current tax payable Total equity and liabilities 100 210 90 Nil 160 110 400 1,525 270 915