Layla Corp. is preparing its statement of cash flows for the year ended Dec. 31, 2021 and has provided the following information: Profit before income tax Depreciation on property, plant and equipment Provision for impairment losses Unrealized foreign exchange gains Fair value adjustment gain on FA at FVTPL Fair value adjustment loss on FA at FVTOCI Fair value adjustment loss on investment property Share of profit of associate Gain on sale of FA at AC Loss on sale of equipment Gain on debt extinguishment Gain on distribution of non-cash assets to owners Interest expense Interest payable, beginning of the year Interest payable, end of the year Interest income P880,000 250,000 150,000 60,000 130,000 65,000 190,000 220,000 85,000 70,000 125,000 40,000 150,000 100,000 50,000 80,000 30,000 20,000 Interest receivable, beginning of the year Interest receivable, end of the year Income taxes paid Accounts receivable, beginning of the year Accounts receivable, end of the year Inventory, beginning of the year Inventory, end of the year Accounts payable, beginning of the year Accounts payable, end of the year • The change in FA at FVTPL represents the fair value adjustment. Required: Using the indirect method, prepare the operating activities section of the entity's statement of cash flows for the year ended Dec. 31, 2021 260,000 500,000 850,000 500,000 400,000 200,000 500,000
Layla Corp. is preparing its statement of cash flows for the year ended Dec. 31, 2021 and has provided the following information: Profit before income tax Depreciation on property, plant and equipment Provision for impairment losses Unrealized foreign exchange gains Fair value adjustment gain on FA at FVTPL Fair value adjustment loss on FA at FVTOCI Fair value adjustment loss on investment property Share of profit of associate Gain on sale of FA at AC Loss on sale of equipment Gain on debt extinguishment Gain on distribution of non-cash assets to owners Interest expense Interest payable, beginning of the year Interest payable, end of the year Interest income P880,000 250,000 150,000 60,000 130,000 65,000 190,000 220,000 85,000 70,000 125,000 40,000 150,000 100,000 50,000 80,000 30,000 20,000 Interest receivable, beginning of the year Interest receivable, end of the year Income taxes paid Accounts receivable, beginning of the year Accounts receivable, end of the year Inventory, beginning of the year Inventory, end of the year Accounts payable, beginning of the year Accounts payable, end of the year • The change in FA at FVTPL represents the fair value adjustment. Required: Using the indirect method, prepare the operating activities section of the entity's statement of cash flows for the year ended Dec. 31, 2021 260,000 500,000 850,000 500,000 400,000 200,000 500,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 27BE
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Transcribed Image Text:Layla Corp. is preparing its statement of cash flows for the year ended Dec. 31, 2021 and has
provided the following information:
Profit before income tax
Depreciation on property, plant and equipment
Provision for impairment losses
Unrealized foreign exchange gains
Fair value adjustment gain on FA at FVTPL
Fair value adjustment loss on FA at FVTOCI
Fair value adjustment loss on investment property
Share of profit of associate
Gain on sale of FA at AC
Loss on sale of equipment
Gain on debt extinguishment
Gain on distribution of non-cash assets to owners
Interest expense
Interest payable, beginning of the year
Interest payable, end of the year
Interest income
P880,000
250,000
150,000
60,000
130,000
65,000
190,000
220,000
85,000
70,000
125,000
40,000
150,000
100,000
50,000
80,000
30,000
20,000
Interest receivable, beginning of the year
Interest receivable, end of the year
Income taxes paid
Accounts receivable, beginning of the year
Accounts receivable, end of the year
Inventory, beginning of the year
Inventory, end of the year
Accounts payable, beginning of the year
Accounts payable, end of the year
• The change in FA at FVTPL represents the fair value adjustment.
Required:
Using the indirect method, prepare the operating activities section of the entity's statement of
cash flows for the year ended Dec. 31, 2021
260,000
500,000
850,000
500,000
400,000
200,000
500,000
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