IBERSOL | 2019 Annual Report

Consolidated Financial Statements 13. INVENTORIES On 31 December 2019 and 2018, stocks were broken down as follows: Dec/2019 Dec/2018 Raw material and consumables 11 701 304 11 237 246 Merchandise 388 663 460 061 12 089 967 11 697 307 Decreases -74 981 -74 981 Net inventories 12 014 986 11 622 326 The cost of inventories recognized in 2019 as an expense and included under “cost of sales” amounted to € 117,329,396 (in 2018: € 108,799,400), as shown below: Dec/2019 Dec/2018 Initial balance 11 697 307 12 164 888 Currency conversion -546 938 -1 103 696 Perimeter variation 40 909 - Purchases 122 425 272 113 244 710 Inventories changes -4 197 186 -3 809 195 Final balance 12 089 967 11 697 307 Cost of sales 117 329 396 108 799 400 The value of stocks changes mainly relates to staff meals at the workplace and con- sumer packagings. 14. CASH AND CASH EQUIVALENTS On 31st December 2019 and 2018, cash and cash equivalents are broken as follows: Dec/2019 Dec/2018 Cash 1 065 534 1 082 754 Bank deposits 37 358 723 36 847 870 Treasury applications 500 500 Cash and bank deposits in the balance sheet 38 424 757 37 931 124 Bank overdrafts -3 739 953 -5 882 564 Cash and cash equivalents in the cash flow statement (1) 34 684 804 32 048 560 (1) there are no significant cash and cash equivalents unavailable for use by the Ibersol group. Of this amount 761,361 eur (33,067,700 eur in 2018) are deposited in Angola, existing restrictions on its use outside the country, authorization from BNA (Angola central bank) and access to the purchase of foreign currency is required. 262