Plz i want the answers with ditals in word file

a. Question 1 Discuss the objectives of the Three major components {Income Statement (Profit and Loss Account), Statement of Financial Position (Balance sheet), and Cash flow Statement of the Financial Statements as per IASI. b. Explain the importance of Cash Flow Statement in the business with reference to its three major components. Question 2 AAA Ltd income statement for the year ended 31st Dec 2009 and the balance sheets as at 31st Dec 2009 and 2008 are as follows: Income statement OMR in million Revenue 312 Cost of sales (177) Gross profit 135 Distribution expenses (36) Administrative expenses (15) 84 Rental income 14 98 Operating profit Interest payable (13) Profit before taxation 85 Taxation (18) Profit for the year 67 Balance sheet as at 31st Dec 2009 and 2008 opning 2009 2008 OMR in million OMR in million Non - current assets Property plant and equipment Land and buildings Plant and machinery 155 155 157 163 312 318 Current assets Inventories 18 21 Trade receivables 73 70 Current liabilities Borrowings (all bank overdrafts) (45) (28) Trade payables (21) (28) (12) taxation (9) Net current 16 24 assets Non-current liabilities Borrowings loan notes (75) (125) Net assets 253 216 150 100 Equity Called -up ordinary share capital Share premium account Revaluation reserve 20 5 LO 35 Retained earnings 98 61 253 216 Additional information:- i. There was no share issue for cash during the year. ii. The interest payable expense was equal in amount to the cash outflow. iii. A dividend of OMR 30 million was paid. iv. During 2009, the business spent OMR 33 million on additional plant and machinery. v. There were no other non-current assets acquisitions or disposals. You are required to prepare: A. Prepare a reconciliation of operating profit to net cash flow from operating activities for AAA Ltd for the year 31st Dec 2009. B. Show the workings for taxation, interest and fixed asset purchase amount of Fatima Ltd for the year 31st Dec 2009. C. Prepare cash flow statement as per IAS 7, for AAA Ltd for the year 31st Dec 2009 and Comment briefly on the cash flow position of the AAA Ltd for the year 31st Dec 2009