Find the net book value of assets
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Ye
Notes
2020
Cash Flows from Operating Activities
Profit before tax
P5,127,831,149
Adjustments for:
Depreciation and amortization
12,13,15
1,106,149,015
Finance costs
17,32
261,151,374
Provision on slow moving inventories
10
83,254,371
Loss on impairment of input VAT
11
9,316,412
Retirement benefit expense
19
70,397,959
Provision on write-down
10
391,036,678
Loss (Gain) on disposal of property, plant and equipment - net
15
(2,503,626)
Allowance for expected loss
9
9,270,257
Provisions on inventory obsolescence
24
Loss on impairment of goodwill
Share based compensation expense
12
28
Impairment loss of trademark
34,700,000
Interest income
23
(35,206,519)
Gain from sale of scrap - net
Unrealized foreign exchange loss (gain) - net
23
(107,664,525)
41,100,997
Reversal of allowance for sales return
9
(3,446,268)
Reversal of accruals
19
(107,184,824)
Reversal of allowance of inventory
10
_(373,327,170)
Operating cash flows before working capital changes
6,504,875,280
Decrease (Increase) in:
Trade and other receivables
(605,209,506)
Due from related parties
Inventories
(19,199,975)
(2,524,528,199)
Biological assets
(32,346,274)
Prepayments and other current assets
335,800,702
Other non-current assets
(43,657,035)
Increase (Decrease) in:
2,955,682,590
Trade and other payables
Due to related parties
88,515,508
Finance lease obligation
Exchange differences on translating operating assets and liabilities
Cash generated from operations
6,659,933,091
Contribution to the retirement fund
19
(48,612,624)
Income tax paid
(1,468,959,658)
Interest received
35,136,001
Net cash from (used in) operating activities
5,177,496,810
Cash Flows from Investing Activities
Acquisitions of property, plant and equipment
Proceeds from sale of property, plant and equipment
15
(1,736,384,126)
2,503,626
Net cash used in investing activities
(1,733,880,500)
Cash Flows from Financing Activities
Proceeds from borrowings
17
5,551,000,000
Repayments of borrowings
17
(7,537,541,907)
(1,275,213,094)
Dividends paid
Finance costs paid
29
(264,635,783)
Payment of lease liabilities
32
(295,688,307)
Net cash from (used in) financing activities
(3,822,079,090)
Net Increase (Decrease) in Cash and Cash Equivalents
(378,462,781)
Cash and Cash Equivalents, Beginning
1,607,844,054
Cash and Cash Equivalents, End
P1,229,381,273](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1df3ed2a-5148-41df-ba5d-edc8a1930f12%2Fd309e6f1-3b78-41db-a0df-2e749c37b7b7%2Fhi8ig1_processed.jpeg&w=3840&q=75)
![CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Decem
Notes
2020
ASSETS
Current Assets
P 1,229,381,273
7,599,984,172
Cash and cash equivalents
Trade and other receivables - net
9
Due from related parties
27
280,788,885
Inventories - net
10
14,313,100,885
Biological assets
14
65,726,630
Prepayments and other current assets - net
11
484,492,819
Total Current Assets
23,973,474,664
Non-current Assets
Property, plant and equipment - net
15
7,290,756,893
Intangible assets - net
12
3,448,276,612
Right-of-use assets - net
13
678,300,084
Deferred tax assets
34
752,107,229
Other non-current assets
16
133,450,144
Total Non-current Assets
12,302,890,962
P36,276,365,626
LIABILITIES AND EQUITY
Current Liabilities
Trade and other payables
18
P 9,670,565,636
Borrowings - current portion
17
3,533,466,680
Income tax payable
194,877,487
Due to related parties
27
75,894,675
Lease liabilities- current portion
32
271,207,134
Total Current Liabilities
13,746,011,612
Non-Current Liabilities
Borrowings - net of current portion
Retirement benefit obligation
17
19
618,902,329
Lease liabilities - net of non current portion
32
465,842,247
Deferred tax liability
34
9,398,845
Total Non-current Liabilities
1,094,143,421
14,840,155,033
Equity
Share capital
Share premium
20
3,542,258,595
20
4,936,859,146
Share-based compensation reserve
28
8,211,398
Other reserves
30,628,942
Currency translation adjustment
23,818,317
Retained earnings
12,894,434,195
21,436,210,593
P36,276,365,626](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1df3ed2a-5148-41df-ba5d-edc8a1930f12%2Fd309e6f1-3b78-41db-a0df-2e749c37b7b7%2Fqsqrj7h_processed.jpeg&w=3840&q=75)
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