QUESTION 2

XXXXXs Co income statement for the year ended 31 December 2021 and statement of financial position at 31 December 2021 and 2020 are as follows: XXXXX Co INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021
P000		P000
Sales Raw materials consumed Staff costs Depreciation Loss on disposal of non-current asset Operating profit Interest payable Profit before tax Taxation Profit for the year	70 94 118 18		720 300 420 28 392 124 268
XXXXX CO STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER
2021 P000		2020 P000
Non-current assets Cost Depreciation Current assets Inventory Trade receivables Bank Total assets Equity and liabilities Equity Share capital Share premium Retained earnings Non-current liabilities Long-term loans Current liabilities Trade payables Taxation Total equity and liabilities	1,596 (318) 1,278 24 76 48 148 1,426 360 36 716 1,112 200 12 102 114 1,426		1,560 (224) 1,336 20 58 56 134 1,470 340 24 514 878 500 6 86 92 1,470

Additional information:

i. Dividends paid were P66,000.

ii. During the year, the company paid P90,000 for a new piece of machinery.

Required:

Prepare the statement of cash flows for XXXXX Co for the year ended 31 December 2021 using the indirect method. (25 marks)