Financial information for Tremendous SpA for the year ended 31 December 2009 follows: 

Additional information: 

This additional information is relevant to the preparation of statement. of cash flows: 

1. bs All sales made by Tremendous SpA are credit sales. All purchases are on account. 

2. Interest expense for the year 2009 was EUR 6,000, which was fully paid during the year. 

3.The company pays salaries and other employee dues before the end of each month. All administration and selling expenses incurred were paid before 31 December 2009. 

4. Investment income comprised dividend income from investments in shares of blue chip companies. THis was received before 31 December 2009. 

5.Equipment with a net book value of EUR 22,500 and original cost of EUR 31,500 was sold for EUR 22,500. 

6. The company declared and paid dividends of EUR 36,000 to its shareholders during 2009. 

7. Income tax expense for the year 2009 was EUR 12,000, against which the company paid EUR 6,000 during 2009 as an estimate. 

Prepare the statement of cash flows for Tremendous SpA, according to the requirements of IAS 7 under both the direct and indirect methods.

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Tremendous SpA Balance sheet as at 31 December 2009 and 2008 Assets Cash and cash equivalents Trade receivables Inventory. Intangible asset, net Due from associates Property, plant and equipment, cost Accumulated depreciation Property, plant and equipment, net Total assets Liabilities Trade payables Income taxes payable Deferred taxes payable Total liabilities Shareholders' equity Share capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 2009 9,000 15,000 6,000 3,000 57,000 36,000 (15,000) 21,000 111,000 15,000 6,000 9,000 30,000 19,500 61,500 81,000 111,000 2008 3,000 7,500 4,500 4,500 57,000 67,500 (18,000) 49,500 126,000 37,500 3,000 6,000 46,500 19,500 60,000 79,500 126,000