Required:

1. Prepare the income statement for the years ended 31 December 2021 and 2022. (2 Marks). 2. Prepare the comprehensive income for the years ended 31 December 2021 and 2022. (1 Mark).

3. Prepare a statement of cash flows for the year ended 31 December 2022, by using the indirect method. (3 Marks).

4. It is relatively easy to manufacture profit, but virtually impossible to create cash. Discuss this statement. (1 Mark).

5. Why non-cash transactions are important? Explain your answer. (1 Mark).

6. The direct method of preparing the statement of cash flows is the easiest to understand, but most companies use the indirect method. Why do you think this is the case? (1 Mark).

7. Many countries require International Financial Reporting Standards (IFRS) whereas some countries required the use of Generally Accepted Accounting Principles (GAAP). Discuss in detail the differences between IFRS and GAAP in preparing the cash flow statement.

Project Title: "Analyzing the Income Statement, Comprehensive Income and the Statement of Cash Flows of Al Majd Company" Backeround: A merchandising company, Al Majd, has the followng accounts ar the years ended 31 December 2021 and 2022 : Additional Information for the year 2022: 1- Cash in January 2022 is 2,922,0000 QAR. 2- The weighted-average number of common shares outstanding is 90,750 . 3- The company has 1,250 securities outstanding that are convertible into common shares, 4- Depreciation and amortization expenses 675,000 QAR. 5- Non-cash stock-based compensation expenses 279,000 QAR. 6- Increasc in accounts receivable 312,000QAR. 7- Increase in accounts payable and accrued expenses 129,0610 QAR. 8- Increase in inventories 231,000QAR. 9- Increase in income tax payable 21,000 QAR. 10-Increase in prepaid expenses 168,000QAR, 11-Capial expenditure (60\% paid cash) 1,950,000 QAR. 12-Repurchase of common stock 1,674,0100 QAR. 13-Proceeds from sales of investments 2,907,000 QAR. 14-Proceeds from exercise of stock options 258,000QAR. 15-Proceceds from issuartice of debr 900,000QAR 16-Payment of dividends 447,000 QAR. 17-Repayment of debt 807,000 QAR. 18-Payment of caprital (nance) lease obligotions 27,000 QAR. 19-Purchase of investmenes 3,201,000 QAR. Project Title: "Analyzing the Income Statement, Comprehensive Income and the Statement of Cash Flows of Al Majd Company" Backeround: A merchandising company, Al Majd, has the followng accounts ar the years ended 31 December 2021 and 2022 : Additional Information for the year 2022: 1- Cash in January 2022 is 2,922,0000 QAR. 2- The weighted-average number of common shares outstanding is 90,750 . 3- The company has 1,250 securities outstanding that are convertible into common shares, 4- Depreciation and amortization expenses 675,000 QAR. 5- Non-cash stock-based compensation expenses 279,000 QAR. 6- Increasc in accounts receivable 312,000QAR. 7- Increase in accounts payable and accrued expenses 129,0610 QAR. 8- Increase in inventories 231,000QAR. 9- Increase in income tax payable 21,000 QAR. 10-Increase in prepaid expenses 168,000QAR, 11-Capial expenditure (60\% paid cash) 1,950,000 QAR. 12-Repurchase of common stock 1,674,0100 QAR. 13-Proceeds from sales of investments 2,907,000 QAR. 14-Proceeds from exercise of stock options 258,000QAR. 15-Proceceds from issuartice of debr 900,000QAR 16-Payment of dividends 447,000 QAR. 17-Repayment of debt 807,000 QAR. 18-Payment of caprital (nance) lease obligotions 27,000 QAR. 19-Purchase of investmenes 3,201,000 QAR