Zain JO 3:15 PM 66% Exercises Using the indirect method of presenting cash flows from operating activities, prepare a statement of cash flows in accordance with IAS 7 for the year ended 31 December 2017 Exercise 17.15 PREPARATION OF A STATEMENT OF CASH FLOWS ** A summarised comparative statement of financial position of Bronze Inc. is presented below, together with a statement of profit or loss and other comprehensive income for the year ended 31 December 2017 Cash Trade receivables Allowance for doubtful debts Inventory Investments Plant Accumulated depreciation 31 Dec 2016 $ 45000 69 000 (3000) 45000 53000 187000 (35000) $361 000 $ 65000 5000 15000 30000 80000 OK 100 000 2000 Accounts payable Accrued interest Current tax payable Deferred ed tax Borrowings Share capital Investment revaluation reserve Retained earnings 31 Dec 2017 $ 35000 105 000 16.000 67 000 60000 225 000 153 000 $433000 $ 75000 7000 18000 37 000 100 000 100 000 7000 89000 $433 000 64000 $361000 CHAPTER 17 Statement of cash flows 3 Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017 Sales Cost of sales Gross profit Distribution expenses Administration expenses Interest expense Profit before tax Income tax expense Profit for the year Other comprehensive income Gain on revaluation of investments inet of tax) Total comprehensive income $ 1035 000 (774000) 26100 176 0001 196 000) 7000 82000 24000 58000 5 000 $ 63 000 Additional information (a) The movement in the allowance for doubtful debts for the year comprises: Balance at 31 December 2016 $ 3000 Charge for year 5.000 Bad debts written off 12 000 Balance at 31 December 2017 6000 (b) The investments are measured at fair value, with gains and losses recognised in other comprehensive income, and accumulated in the investment revaluation reserve (c) There were no disposals of plant during the year. (d) A dividend of $33000 was paid during the year. (e) There were no acquisitions or disposals of investments during the year. (1) Bronze Inc. classifies interest as an operating activity Required 1. Using the direct method of presenting cash flows from operating activities, prepare a statement of cash flows in accordance with IAS 7 for the year ended 31 December 2017. 2. Prepare the operating activities section of the statement of cash flows using the indirect method of presentation Exercise 17.16 PREPARATION OF STATEMENT OF CASH FLOWS INFORMATION ** The statement of profit or loss and other comprehensive income and comparative statements of financial position of Braun GmbH are as follows: Braun GmbH Statement of Financial Position as at 31 December 2016 2017