The Smetana Company has a commercial activity in the beauty cream business.
Required
€¢ With the help of the following balance sheets, income statements and additional information, prepare a statement of cash flows for the years X2 and X3 using the direct method.
€¢ Prepare a separate statement for X2 and X3 reconciling the net income and the net cash provided by/ used in operating activities. This statement represents the application of the indirect method in calculating the cash flow from operating activities.
Balance sheet (000 CU)

Income statement (000 CU)

It should be noted that this income statement is presented by nature.
Additional information

Transcribed Image Text:

ASSETS Year Year Year end X1end X2 end X3 Fixed assets (gross 15,000 22,000 27400 -4,9005,5006,000 10,100 16,500 21,400 1,520 2,3003,400 0-100 amount) Less accumulated Fxed assets (net Inventories (gross Less accumulated depreciation amount) amount) provision [valuation allowance] Inventories (net amoun 1,520 2,300 3,300 3,700 5,700 7,600 240 16,470 24,75032,540 Accounts receivable 1,150 Cash at bank TOTAL ASSETS EQUITY AND LIABILITIES Share capital 250 Year Year Year end X1end X2 end X3 5,0006,100 8,700 1,314 2,653 3,296 247 8,537 9,614 12,243 3,9008,50011,500 Trade accounts payable 3,693 6,238 7,417 80 228 1,300 Reserves Net income/loss 2,223 861 Shareholders' equity Financial liabilities (1) Income tax payable Fixed assets accounts 340 170 payable TOTAL LABILITES 16,470 24,750 32,540 100 1,000 2,000 (1) Including bank overdrafts REVENUES Sales of merchandise Other operating X1 X3 23,900 31,600 38,500 85 140 revenues Total operating 23,985 31,740 38,735 revenues Fnancial revenues Exceptional income (1) TO TAL REVENUES EXPENSES Purchases of 40 200 85 24,000 31,980 39,220 9,3504,13018,180 -780-1,100 1,310 2,0702,940 350 8,950 12,460 15,430 X1 X2 X3 merchandse Change in inventory of merchandse Other purchases and external expenses Taxes and similar 150 320 Personne compensation expenses Depreciation expenses Provision expenses 800 1,0001,500 100 0 0 valuation allowances Total operating 20,33029,200 37,400 expenses Financial expenses Exceptional expenses 889 1,350 100 190 145 1,112 2,223 600 ncome tax expense TOTAL EXPENSES Net income 123 21,777 31,119 38,973 247 430 861 (1) Sale price of fixed 200 assets sold (2) Book value of fixec 100 assets sold 31/12/X1 31/12/X2 Fixed assets (gross) Accumulated depreciation Accumulated provision valuation 31/12/X3 15,000 8,01,000 22,000 6,500,100 27,400 400 5,5005001,000 6,000 100 4,900 1,000 0 0 100 allowance Financial liabilities (excluding overdrafts) 3,800 4,000 X2 300 7,500 3,0001,000 9,500 X3 Dividends paid 884 218