Task number 2

Company "Sigma" Ltd. had funds in the current account amounting to 642,000 KM at the beginning of 2022 (January 1, 2022), while the cash balance was 28,500 KM. Based on the following business transactions, prepare a Cash Flow Statement using the direct method:

1. Inventory of materials was purchased, and a supplier invoice of 140,400 KM was received (the value of the delivery is 120,000 plus 20,400 KM VAT). The material was stored.
2. Materials with a value of 60,000 KM were issued from inventory for use.
3. Part of the material supplier's liability amounting to 90,000 KM was settled by payment from the current account.
4. Gross salaries, as well as taxes and contributions on salaries, were calculated and paid, totaling 405,528 KM. Of this amount, 305,128 KM relates to production employees, and 100,400 KM relates to administrative employees.
5. Invoices totaling 1,404,000 KM were issued to customers based on product sales (the value of deliveries is 1,200,000 KM plus 204,000 KM VAT). The cost of goods sold amounts to a total of 900,000 KM.
6. During the reporting period, receivables of 1,053,000 KM were collected from customers through the current account.
7. Based on a decision of the assembly, an amount of 420,000 KM was paid from the current account to the owners of "Sigma" Ltd. as their share in the profit for the previous year.
8. Due to the purchase of new equipment, the company entered into a long-term loan agreement with a bank, and the bank deposited an amount of 600,000 KM into the current account.
9. New machines were purchased, and an invoice of 526,500 KM was received from the supplier (the value of the delivery is 450,000 KM plus 76,500 KM VAT).
10. An invoice of 1,579,500 KM was paid from the current account to the supplier of fixed assets.
11. Depreciation of equipment for the reporting period was calculated and amounted to 331,500 KM.
12. Old machines from the production department were sold, and an invoice of 240,000 KM + 40,800 KM VAT was issued to the buyer (the book value of the machine is 200,000 KM).
13. The buyer of the machines paid the invoice amount of 842,400 KM into the current account of "Sigma" Ltd.
14. An increase in the company's share capital was made by the shareholders, who deposited an amount of 180,000 KM into the current account.
15. Invoices for electricity consumed totaling 126,360 KM (108,000 KM plus 18,360 KM VAT) were received during the reporting period. All invoices were paid from the current account.
16. The first installment of the long-term loan to the bank was paid in the amount of 72,000 KM, of which 61,200 KM is principal and 10,800 KM is interest.
17. Revenue was generated from the sale of a 25% stake in the associated company "Beta," and an amount of 210,000 KM was collected through the current account for this reason.
18. VAT obligations totaling 222,000 KM were paid based on monthly VAT returns.
19. The following payments were made from the current account: a) 48,000 KM for customer refunds related to submitted complaints, b) 12,000 KM for monetary fines for economic offenses, and c) 30,000 KM for chamber membership fees, prescribed charges, and other fees.