Question

Flounder Limited, which follows IFRS, has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Condensed financial data for 2020 and 2019 follow (in thousands):

FLOUNDER LIMITED Comparative Statement of Financial Position December 31
			2020			2019
Cash			$2,010			$1,150
FV-NI investments			1,300			1,420
Accounts receivable			1,845			1,350
Inventory			1,660			2,030
Plant assets			2,005			1,790
Accumulated depreciation			(1,200	)		(1,170	)
			$7,620			$6,570
Accounts payable			$1,295			$950
Accrued liabilities			290			340
Mortgage payable			1,370			1,590
Common shares			2,080			1,790
Retained earnings			2,585			1,900
			$7,620			$6,570
FLOUNDER LIMITED Income Statement Year Ended December 31, 2020
Sales						$6,885
Cost of goods sold						4,700
	Gross margin					2,185
Administrative expenses						910
Income from operations						1,275
Other expenses and gains
	Interest expense		$(20	)
	Gain on disposal of FV-NI investments		80			60
Income before tax						1,335
Income tax expense						405
Net income						$930

Additional information: During the year, $70 of common shares were issued in exchange for plant assets. No plant assets were sold in 2020. The FV-NI investments’ carrying amount and market value were the same at December 31, 2020.

Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Enter amounts in thousands.)

My question is how do you calculate : Proceeds from the the sale of FV-NI Investments ?

Answer 1

Statement of cash flow
Cash flows from operating activities
Collection from customers 1350+6885-1845	6390000
Payment to suppliers	(3,985,000)
Payment of administrative expenses 340+910-290-(1170-1200 depreciation)	-930000
Payment of income tax	-405000
Payment of interest expenses	(20,000)
Net cash from operating activities		1,050,000.00
Cash flows from investing activities
Sale of investment (1420-1300)+80	200000
Purchase of Plant assets 2005-(1790+70 common stock)	-145000
Net cash used investing activities		55,000.00
Cash flows from financing activities
Cash payment of dividend 2585-(1900+930)	-245000
Repayment of mortgage payable (1370-1590)	-220000
Isuue of common stock 2080-(1790+70)	220000
Net cash from financing activities		(245,000.00)
Net Increase in cash and cash equivalents		860,000.00
Cash and cash equivalents at beginning of period		1,150,000.00
Ending Balance		2,010,000.00
working
Payment to suppliers
COGS	4700
Add: ending Inventory	1660
Less: beg Inventory	-2030
Purchases	4330
Add: Beg Accounts payable	950
Less: ending Accounts payable	-1295
Payment to suppliers	3985	3985000
If any doubt please comemnt. If satisfied you can rate