Required:

1) Prepare GFCs statement of cash flows for the year ended 31 Dec 20x2 using the available data. Use the indirect method to report cash flows from operating activities. (18 marks)

2) The cash balance of GFC increased a lot from the end of 20x1 to 20x2. Do you think the cash flow of GFC is healthy? Comment on the cash flow situation of GFC and state two observations in your analysis of the cash flow of GFC. (7 marks)

The following is an excerpt of the comparative balance sheets of Gus Fring Company ('GFC') at 31 Dec 202 and 201 : In addition, during the year ended 31 Dec 202, GFC recorded the following transactions