Suppose you are an accountant for a manufacturing company called ABC Ltd, which operates internationally. ABC Ltd has provided you with its financial statements for the year ending December 31, 2023. You are tasked with preparing a comprehensive cash flow statement in compliance with IAS 7. Below is the relevant financial data: Balance Sheet as of December 31, 2023

Cash and Cash Equivalents at the beginning of the year: $100,000

Accounts Receivable: $120.000

Inventory: $150.000

Property, Plant, and Equipment. $500,000.

Accumulated Depreciation $50,000

Trade Payables: $80,000

Bank Loan (Non-current): $200,000

Bank Loan (Current): $20,000

Share Capital: $300.000

Retained Earnings. $50,000

Dividends Paid: $30,000

Interest Expense: $10,000

Income Tax Paid: $15,000

Proceeds from Sale of Equipment: $10,000

Purchase of New Equipment: $70,000

Net Income: $80,000

Additional Information

Depreciation for the year: $20,000

Non-cash expenses: $5,000

Changes in working capital during the year: Accounts Receivable decreased by $10,000, Inventory increased by $30,000, and Trade Payables decreased by $5,000.

The bank loan (non-current) was repaid by $50,000.

Interest Expense and Income Tax Paid are included in Operating Activities.

Question

As per the requirements of IAS 7 - "Statement of Cash Flows," please prepare a comprehensive cash flow statement for ABC Ltd. for the year ending December 31, 2023. Ensure that you include the following sections:

• Cash Flows from Operating Activities
• Cash Flows from Investing Activities
• Cash Flows from Financing Activities

In each section, provide detailed explanations of how you arrived at the cash flow amounts. Also, calculate the net change in cash and cash equivalents for the year and provide a reconciliation of the cash and cash equivalents at the beginning and end of the year.

Please make sure to follow the indirect method for operating activities and adhere to the principles and classifications outlined in IAS 7.