1. 1.compare the direct method and indirect method.

2. prepare a statement of cash flows for khai sdn. bhd. for the year 2015. (use the indirect method)

Q6. The following information is taken from Khai Sdn. Bhd.'s financial statements: (Maklumat berikut diambil daripada penyata kewangan Khai Sdn. Bhd.:) December 31 2015 Cash (Tunai) RM100,000 Accounts receivable (Akaun belum terima) 95,000 Provision for doubtful accounts (Peruntukan hutang ragu) (4,500) Inventory (Inventori) 145,000 Prepaid expenses (Belanja-belanja pra bayar) 7,500 Land (Tanah) 100,000 Buildings (Bangunan) 287,000 Accumulated depreciation (Susut nilai terkumpul) (35,000) Patents (Paten) 20.000 RM715,000 2014 RM 27,000 80,000 (3,100) 175,000 6,800 60,000 244,000 (13,000) 35,000 RM611,700 RM 84,000 63,000 60,000 100,000 10,000 Accounts payable (Akaun belum bayar) RM 90,000 Accrued liabilities (Liabiliti terakru) 54,000 Bonds payable (Bon belum bayar) 135,000 Common stock (Saham biasa) 100,000 Retained earningsappropriated 80,000 (Pendapatan tertahan - diagihkan) Retained earningsunappropriated 271,000 (Pendapatan tertahan - tidak diagihkan) Treasury stock, at cost (Saham perbendaharaan - pada kos) (15,000) RM715,000 302,700 (8,000) RM611,700 Net income (Pendapatan bersih) Depreciation expense (Belanja susut nilai) Amortization of patents (Pelunasan paten) Cash dividends declared and paid (Dividen diisytihar dan dibayar) Gain or loss on sale of patents (Laba atau rugi dari jualan paten) For 2015 Year RM63,300 22,000 5,000 25,000 none (tiada)