QUESTION 1) (25 pts) Answer the followings. a) Calculate year to year change in KWD and in % for net cash from operating activities (3 pts), net cash used in investing activities (3 pts) and net cash used in financing activities (3 pts). separately. b) What are the reasons of a negative net cash from investing activities in 2018 (3 pts), and the reasons of a positive net cash from investing activities in 2019 (3 pts). Tell the reasons one by one clearly, c) Considering the changes you calculated in (a), and overall picture in the table, evaluate the Statement of Cash Flows of the company (10 pts, min 100 words) Consolidated Statement of Cash Flows - Year ended 31 December 2019 Kuwaiti Dinars 2019 Note 2018 15,407,798 6,975,653 3,4 1,577,120 28,423 299,302 540,000 61,380 Cash flows from operating activities Profit before contributions and taxes Adjustments for Depreciation Finance costs Foreign exchange loss Provision for post employment benefits Gain on sale and lease back Expected credit loss on Financial Assets Interest on security deposit Provision for KFAS, Zakat & NEST Operating profit before working capital changes Decrease/Cincrease) in advance for maintenance Increase in inventories Increase in security deposits Increase in trade and other receivables Increase/(decrease in maintenance payables Increase in trade and other payables Increase in deferred revenue Post-employment benefits paid Cash generated from operations Pald to KFAS, Zakat & NLST Net cash from operating activities 12,409,435 2,660,994 223,249 406,376 (1.159,835) 100,969 (61,176) 466,601 30,454,411 2.552,608 (65,444) (59,336) (7,841,152) 7.246,336 4,045,372 417,508 (322,559) 36,427.744 (308,363) 36.119.381 308,361 9,790,239 (1,318,301) (12,378) (1.893,065) (11,616.987) (411.317) 6,568,071 356,258 (578,941) 581,549 (326, 591) 504,950 (9.779.185) Cash flows from investing activities Purchase of property and equipment (net of disposal Sale of Engine fuit cash fronttised in) Westing activities (4,314,9003 4,692.8.34 307,914 (9.779.105) 7.000.000) Cash flows from financing activities Dividend paid Re-payment of los laties including finance com) Finance costs and Netcash used in financing tivi (7,000,000) (11.977076) (1650) (242 (2042 CISOLASI Not increase/(decrease in cash and cash equivalente 1.00 45.00 22.7.0 Cash and cash equivalente al beginning of year Expected end 23 Consolidated Statement of Income - Year ended 31 December 2019 Kuwaiti Dinars 2019 Note 2018 Revenge Operating costs Operating profit 15 16 103,698,648 (82,553,173) 21,145,475 82,369,370 (69.8.35,144) 12,534,226 12 582381 (5,707,070) (73,202) (299, 302) 10 Other income General and administrative expenses Finance costs Foreign currency loss Gain on sale and lease back of engines Expected credit loss financial assets Profit before contributions and taxes Zakat expense Contribution to Kuwait Foundation for the Advancement of Sciences (KFAS) National Labour Support Tax (NLST) Profit for the year 489,877 (6,897,211) (165,960) (223,249) 1.159,835 (100,969) 15.407,798 (93,695) (1.38.670) (234,236) 14,941 192 (61,100) 6.975,653 (69.991) (63,393) (174.97 6,667,292 Answer the questions using the data in the tables. Consolidated Statement of Financial Position as at 31 December 2019 Kuwaiti Dinars 2019 Note 2018 ASSETS Non-current assets Property and equipment Right of use assets Advance for maintenance Security deposits 21,971,472 3 4 5 6 20,819,335 82,691 386 11,613.952 3.043,855 118,168,526 14,166,560 2,609,919 35.747.951 312.557 1,172,192 23,245,303 23,754,647 48414,697 166.653,225 247,113 1.914,090 $5,490,085 6.465,306 24 TB,194 02.04.145 Current assets Inventories Security deposits Trade and other receivables Cash and bank balance Totale LIABILITIES AND EQUITY quity Attributable to parent company's shareholders Share capital Legal reserve Hedige werve Retained earnings Totality 20,000,000 4,294462 10 20,000,000 5,835,243 837.562 13,569,335 40,242 33 13,541,950 27.030.012 Non-current liabilities Post my benefits 13 12 13 2,370,70 . 2.454.00 2,532.150 9,031,616 32.306 BA Current Trade and other pe Deferred mene LARS 1 2.2.140 473 17.037.00 4.295.1 13 Yotels and 30 14 QUESTION 1) (25 pts) Answer the followings. a) Calculate year to year change in KWD and in % for net cash from operating activities (3 pts), net cash used in investing activities (3 pts) and net cash used in financing activities (3 pts). separately. b) What are the reasons of a negative net cash from investing activities in 2018 (3 pts), and the reasons of a positive net cash from investing activities in 2019 (3 pts). Tell the reasons one by one clearly, c) Considering the changes you calculated in (a), and overall picture in the table, evaluate the Statement of Cash Flows of the company (10 pts, min 100 words) Consolidated Statement of Cash Flows - Year ended 31 December 2019 Kuwaiti Dinars 2019 Note 2018 15,407,798 6,975,653 3,4 1,577,120 28,423 299,302 540,000 61,380 Cash flows from operating activities Profit before contributions and taxes Adjustments for Depreciation Finance costs Foreign exchange loss Provision for post employment benefits Gain on sale and lease back Expected credit loss on Financial Assets Interest on security deposit Provision for KFAS, Zakat & NEST Operating profit before working capital changes Decrease/Cincrease) in advance for maintenance Increase in inventories Increase in security deposits Increase in trade and other receivables Increase/(decrease in maintenance payables Increase in trade and other payables Increase in deferred revenue Post-employment benefits paid Cash generated from operations Pald to KFAS, Zakat & NLST Net cash from operating activities 12,409,435 2,660,994 223,249 406,376 (1.159,835) 100,969 (61,176) 466,601 30,454,411 2.552,608 (65,444) (59,336) (7,841,152) 7.246,336 4,045,372 417,508 (322,559) 36,427.744 (308,363) 36.119.381 308,361 9,790,239 (1,318,301) (12,378) (1.893,065) (11,616.987) (411.317) 6,568,071 356,258 (578,941) 581,549 (326, 591) 504,950 (9.779.185) Cash flows from investing activities Purchase of property and equipment (net of disposal Sale of Engine fuit cash fronttised in) Westing activities (4,314,9003 4,692.8.34 307,914 (9.779.105) 7.000.000) Cash flows from financing activities Dividend paid Re-payment of los laties including finance com) Finance costs and Netcash used in financing tivi (7,000,000) (11.977076) (1650) (242 (2042 CISOLASI Not increase/(decrease in cash and cash equivalente 1.00 45.00 22.7.0 Cash and cash equivalente al beginning of year Expected end 23 Consolidated Statement of Income - Year ended 31 December 2019 Kuwaiti Dinars 2019 Note 2018 Revenge Operating costs Operating profit 15 16 103,698,648 (82,553,173) 21,145,475 82,369,370 (69.8.35,144) 12,534,226 12 582381 (5,707,070) (73,202) (299, 302) 10 Other income General and administrative expenses Finance costs Foreign currency loss Gain on sale and lease back of engines Expected credit loss financial assets Profit before contributions and taxes Zakat expense Contribution to Kuwait Foundation for the Advancement of Sciences (KFAS) National Labour Support Tax (NLST) Profit for the year 489,877 (6,897,211) (165,960) (223,249) 1.159,835 (100,969) 15.407,798 (93,695) (1.38.670) (234,236) 14,941 192 (61,100) 6.975,653 (69.991) (63,393) (174.97 6,667,292 Answer the questions using the data in the tables. Consolidated Statement of Financial Position as at 31 December 2019 Kuwaiti Dinars 2019 Note 2018 ASSETS Non-current assets Property and equipment Right of use assets Advance for maintenance Security deposits 21,971,472 3 4 5 6 20,819,335 82,691 386 11,613.952 3.043,855 118,168,526 14,166,560 2,609,919 35.747.951 312.557 1,172,192 23,245,303 23,754,647 48414,697 166.653,225 247,113 1.914,090 $5,490,085 6.465,306 24 TB,194 02.04.145 Current assets Inventories Security deposits Trade and other receivables Cash and bank balance Totale LIABILITIES AND EQUITY quity Attributable to parent company's shareholders Share capital Legal reserve Hedige werve Retained earnings Totality 20,000,000 4,294462 10 20,000,000 5,835,243 837.562 13,569,335 40,242 33 13,541,950 27.030.012 Non-current liabilities Post my benefits 13 12 13 2,370,70 . 2.454.00 2,532.150 9,031,616 32.306 BA Current Trade and other pe Deferred mene LARS 1 2.2.140 473 17.037.00 4.295.1 13 Yotels and 30 14