preapre statement of cash flow for the year ended 31 Dec 20X8 with indirect method. You must remember to present separately Cash from operations in operating activities. Company OMEGA decided to present Interest and Dividend received as Investing activity, while Interest paid as Financing activity
Statement of financial position, year ended 31 Dec 20X7 Income statement, year ended 31 Dec 20X8 Note Note Pronerty, plant and equipment cost of goods sold 7450000 7 Log-term investments 357000 Gross orofit 1820 000 Current assets Operating expenses ation expense ables 135.000 Materials Cash and cash equivalents Pre paid expenses Total assets -728 000 540000 Salaries and wages -370 000 10 130 000 Insurance eer operating expenses Or 9 101 000 Other revenue and expenses Interest revenue 8 070 Equity Comman stack par value 500 000 Dividens revenue f property Lass on investment in financial assets .. -37000 Retained earnings 11 2526 000 195 000 Treasury stock Interest expense 11 50 000 efore tax 162070 Long-term liabilities 2 000 000 nps short.term liabilities Net income 133 070 Short-term borrowings 5 1500000 Trade payables 12 450 000 Tax payables s0000 9101000 Total equity and liabilities NOTE 4 NOTE 3 NOTE 1 At the end of 20X7 long-term investments included investments in equity instruments measured at fair value thorugh profit and loss (which means that any changes in fair value are reported as profit/loss in Income Statement). Any dividends earned are presented as income. Operating expenses in 20X8: Sales revenue in 20x8: 3 848 000 Operating expenses include costs other than production costs, incurred in reporting period. Production costs are Product 1 amount of sold goods 6 240 2) or as Hence operating expenses Selling expenses or ces alor roonuc Moreover 31 March 20x8 4 year debt instruments were purchased (managers intend to hold it till time of maturity). Purchase price (paid in cash) equaled to are paid 1872 008 Inventory [see Note: represent costs such a amount of cash recelved in 20X8 1657 250 Administrative expenses. amount of cash that will be recelved in 20x9 214 750 semiannualy at the and of Sep and Mar every year till maturity date Long term investments in 20x8 1566 000 Operating expenses in 20X8 Product 2 Fr 260 000 ", I. instruments at the end of 20x7 Depreciation expense amount of sold goods celling net prices 880 357000 200 decrease in fair value during 20X8 dividend earned in 20X8 (received in cash) 37000 salaries and wages T8 000 1976 17000 amount ot cach received in 20XB Insurance 370 000 1834 000 culty instruments at the end of 20x8 320000 Talr vale ore Other operatine expenses* 15000 amount of cash that will be received in 20x9 142 000 D Cost of sold gonds in 20x : - nominal value 120000 2g28 c00 Other operating expenses comprise trade recelvables writted down in 20X8 (see Note 9) -purchase price (paid in cash) 120 000 Production cost includes 3 types of costs: -nominal interest rate n 31 Mar 20X8 and 30 Sep 20X8 (cash received) Fenld - interest earned between 30 Sep 20XB and 31 Dec 20XB [cash will be received epods rearesents production costs of goods sold. 2670 31 Mar next year) during reporting period - total interest income in 20X8 3070 ld goods t of materials 610000 - cost of depreciation -cost of wages 300000 125 000 NOTE 2 Product 2- cost of sold goods - cost of materials 410 500 -cost of depreciation -cost of wages 475 000 77 500 Short-term barrowings Company applies FIFO method for Inventory Tax payables at the end of 20x7 Property, plant and equipment at the end of 20X7 7450 000 20x2 and . idesosk valuation were repaid in 20KB NOTE 6 Income tax in 20x8 nd finished - income tax for 20X3 29 000 short-term borraowinz at the end of 20x7 1500 000 praducts, Finished products represents 105 000 term borrowings recegnised as - amount of tax paid in 20X8* production cost of unsold goods at the end of the In 20x8 company invested in Property, plant and cuipment total eanense in 2018 39 000 type: investment amount was paid iIn cash 500000 Interest on short-term borrowings pald in 20X8* 39 000 Amount paid in 20X8 comprises amounts due Tor both previaus and current period. Unpaid Company had no unpaid interests on short term Depreciation in 20x8 975 610 e till the end of March next yearn borrowings at the end of 20x7 -depreciation recognised as Operating expenses in Income Statement ry at the end of 20x7 (depreciation for Selling and Administrative purpasa) 200 Cco NOTE 7 Materisls xIsfine Finished products 455 000 depreciation recognised in initial cost of produced goods (see Note 8y 715 610 Trade receivables at the end of 20X7 135 000 ted at the cnd of 20x7 -cost of materials used in production precess 235 690 consist of zero-coupon bonds with time to maturity clation In 20x8 company found out that one af it's erumulated and will be naid at the maturity Dispasal of Property, plant and cuipment red dates Unpsid interests are added to carrying amount of Lone-lermboerwings In 20x8 company sold one of it's property, wheres anods thus 15.cco.of rocaivablor war wrtton -selling price (received in cash) Carrying amount of sold assets at the moment of disposal Gain on asset disposal down and recognised as Other aperating was received in 200x8. 250 c00 120 000 2000 000 ed in 20x8 .. 1291 000 130 Cco 120000 in 20x8 (accumulated and added to the carrying - amount paid in 20x8 amaunt due till the end of Mar next year receivables written down 1034.000 15 000 amount of long term borrowings 112 000 257000 11: NOTE 9 In production process Em cco New long-term 30v9 omary issuel era.oera-caun hands borrowings Pre for Selling and Administrative purpose nts Company 208 000 bddings with 5 years to maturity. Ay interest are imilarly to exlsting lorg term pays for insurance services for the whole year in advance. Payment are made always at the end of Finished products in 20x8 Total production custs in 20X8 borrowings. Apr. 1872 590 Amount received from issuance of new 2ero - cost of materlals used In production process 70000 1 250 000 130000 coupon bonds Pre-paid expenses at the end of 20x7 ciation npald 20 Apr 20x8 for period 1 May 20X8 -cost of wages 186 9804 360 000 amount of long term borrowings) 44 000 Insurance expenses in 20Xs a20 cco din t ar Cat of aode roid lsen NOTE 10 .. F Note 2). Unsold products are presented in Inventory in Balance Sheet. 195 000 NOTE 8 NOTE 5 NOTE 11 NOTE 13 NOTE 12 Equity at the end of 20x7 All salaries and wages unpaid till the end of 20x7. Trade payables at the end of 20X7 450 000 par value Common stock were paid in 20X8 s00 000 1735 000 Share premium All trade payables reported at the end of 20X7. Accrued salaries at the ond of 20x7 350 001 15: were utlimately paid in 20X8 .. Salaries and wages in 20xa Salaries and wages recagnised in Dperating Changes in equity in 20X8 expenses (for Selling and Administrative hares were issued (cash 728 000 purpose, see Note 3) received at oncel: afmount pal n 20A par value of ieued shares 300 000 121 00 -total issue price 1510 000 Wages recognised in initial cost of produced company purchased it's own shares goods (see Note 8) 186 80 for total price: 210 000 172 450 amount pald in 20x8 30 Jun 20x8 company decided to pay dividend to- -amounts due next year 14 530 ordinary shareholders. 400 000 Statement of financial position, year ended 31 Dec 20X7 Income statement, year ended 31 Dec 20X8 Note Note Pronerty, plant and equipment cost of goods sold 7450000 7 Log-term investments 357000 Gross orofit 1820 000 Current assets Operating expenses ation expense ables 135.000 Materials Cash and cash equivalents Pre paid expenses Total assets -728 000 540000 Salaries and wages -370 000 10 130 000 Insurance eer operating expenses Or 9 101 000 Other revenue and expenses Interest revenue 8 070 Equity Comman stack par value 500 000 Dividens revenue f property Lass on investment in financial assets .. -37000 Retained earnings 11 2526 000 195 000 Treasury stock Interest expense 11 50 000 efore tax 162070 Long-term liabilities 2 000 000 nps short.term liabilities Net income 133 070 Short-term borrowings 5 1500000 Trade payables 12 450 000 Tax payables s0000 9101000 Total equity and liabilities NOTE 4 NOTE 3 NOTE 1 At the end of 20X7 long-term investments included investments in equity instruments measured at fair value thorugh profit and loss (which means that any changes in fair value are reported as profit/loss in Income Statement). Any dividends earned are presented as income. Operating expenses in 20X8: Sales revenue in 20x8: 3 848 000 Operating expenses include costs other than production costs, incurred in reporting period. Production costs are Product 1 amount of sold goods 6 240 2) or as Hence operating expenses Selling expenses or ces alor roonuc Moreover 31 March 20x8 4 year debt instruments were purchased (managers intend to hold it till time of maturity). Purchase price (paid in cash) equaled to are paid 1872 008 Inventory [see Note: represent costs such a amount of cash recelved in 20X8 1657 250 Administrative expenses. amount of cash that will be recelved in 20x9 214 750 semiannualy at the and of Sep and Mar every year till maturity date Long term investments in 20x8 1566 000 Operating expenses in 20X8 Product 2 Fr 260 000 ", I. instruments at the end of 20x7 Depreciation expense amount of sold goods celling net prices 880 357000 200 decrease in fair value during 20X8 dividend earned in 20X8 (received in cash) 37000 salaries and wages T8 000 1976 17000 amount ot cach received in 20XB Insurance 370 000 1834 000 culty instruments at the end of 20x8 320000 Talr vale ore Other operatine expenses* 15000 amount of cash that will be received in 20x9 142 000 D Cost of sold gonds in 20x : - nominal value 120000 2g28 c00 Other operating expenses comprise trade recelvables writted down in 20X8 (see Note 9) -purchase price (paid in cash) 120 000 Production cost includes 3 types of costs: -nominal interest rate n 31 Mar 20X8 and 30 Sep 20X8 (cash received) Fenld - interest earned between 30 Sep 20XB and 31 Dec 20XB [cash will be received epods rearesents production costs of goods sold. 2670 31 Mar next year) during reporting period - total interest income in 20X8 3070 ld goods t of materials 610000 - cost of depreciation -cost of wages 300000 125 000 NOTE 2 Product 2- cost of sold goods - cost of materials 410 500 -cost of depreciation -cost of wages 475 000 77 500 Short-term barrowings Company applies FIFO method for Inventory Tax payables at the end of 20x7 Property, plant and equipment at the end of 20X7 7450 000 20x2 and . idesosk valuation were repaid in 20KB NOTE 6 Income tax in 20x8 nd finished - income tax for 20X3 29 000 short-term borraowinz at the end of 20x7 1500 000 praducts, Finished products represents 105 000 term borrowings recegnised as - amount of tax paid in 20X8* production cost of unsold goods at the end of the In 20x8 company invested in Property, plant and cuipment total eanense in 2018 39 000 type: investment amount was paid iIn cash 500000 Interest on short-term borrowings pald in 20X8* 39 000 Amount paid in 20X8 comprises amounts due Tor both previaus and current period. Unpaid Company had no unpaid interests on short term Depreciation in 20x8 975 610 e till the end of March next yearn borrowings at the end of 20x7 -depreciation recognised as Operating expenses in Income Statement ry at the end of 20x7 (depreciation for Selling and Administrative purpasa) 200 Cco NOTE 7 Materisls xIsfine Finished products 455 000 depreciation recognised in initial cost of produced goods (see Note 8y 715 610 Trade receivables at the end of 20X7 135 000 ted at the cnd of 20x7 -cost of materials used in production precess 235 690 consist of zero-coupon bonds with time to maturity clation In 20x8 company found out that one af it's erumulated and will be naid at the maturity Dispasal of Property, plant and cuipment red dates Unpsid interests are added to carrying amount of Lone-lermboerwings In 20x8 company sold one of it's property, wheres anods thus 15.cco.of rocaivablor war wrtton -selling price (received in cash) Carrying amount of sold assets at the moment of disposal Gain on asset disposal down and recognised as Other aperating was received in 200x8. 250 c00 120 000 2000 000 ed in 20x8 .. 1291 000 130 Cco 120000 in 20x8 (accumulated and added to the carrying - amount paid in 20x8 amaunt due till the end of Mar next year receivables written down 1034.000 15 000 amount of long term borrowings 112 000 257000 11: NOTE 9 In production process Em cco New long-term 30v9 omary issuel era.oera-caun hands borrowings Pre for Selling and Administrative purpose nts Company 208 000 bddings with 5 years to maturity. Ay interest are imilarly to exlsting lorg term pays for insurance services for the whole year in advance. Payment are made always at the end of Finished products in 20x8 Total production custs in 20X8 borrowings. Apr. 1872 590 Amount received from issuance of new 2ero - cost of materlals used In production process 70000 1 250 000 130000 coupon bonds Pre-paid expenses at the end of 20x7 ciation npald 20 Apr 20x8 for period 1 May 20X8 -cost of wages 186 9804 360 000 amount of long term borrowings) 44 000 Insurance expenses in 20Xs a20 cco din t ar Cat of aode roid lsen NOTE 10 .. F Note 2). Unsold products are presented in Inventory in Balance Sheet. 195 000 NOTE 8 NOTE 5 NOTE 11 NOTE 13 NOTE 12 Equity at the end of 20x7 All salaries and wages unpaid till the end of 20x7. Trade payables at the end of 20X7 450 000 par value Common stock were paid in 20X8 s00 000 1735 000 Share premium All trade payables reported at the end of 20X7. Accrued salaries at the ond of 20x7 350 001 15: were utlimately paid in 20X8 .. Salaries and wages in 20xa Salaries and wages recagnised in Dperating Changes in equity in 20X8 expenses (for Selling and Administrative hares were issued (cash 728 000 purpose, see Note 3) received at oncel: afmount pal n 20A par value of ieued shares 300 000 121 00 -total issue price 1510 000 Wages recognised in initial cost of produced company purchased it's own shares goods (see Note 8) 186 80 for total price: 210 000 172 450 amount pald in 20x8 30 Jun 20x8 company decided to pay dividend to- -amounts due next year 14 530 ordinary shareholders. 400 000
