1. Complete the questions below.

a. Prepare the statement of cash flows for Alisya Corporation for the year ended 3 June, 2013, using the direct method.

b. Illustrate the format of the indirect method for the operating activities.

c. Describe how cash transactions are classified in the statement of cash flows.

The following selected data for Alisya Corporation for the year ended 30 June 2013 is available for the preparation of the statement of cashflow. Sales revenue RM900,000 RM 6,000 Interest revenue Cost of goods RM500,000 sold Loss on sale of RM 4,000 marketable securities Operating RM 300,000 expenses Interest expense RM 35,000 Dividend RM 3,000 revenue Gain on sale of RM 31,000 Plant assets tax RM 36,000 Income expense The Cash account began the year with a balance of RM20,000 and ended the year with a balance of RM 55,000. Operating expenses is inclusive of RM 40,000 for depreciation Other information are : Marketable securities increased Note receivable increased Accounts receivable increased Accrued interest receivable decreased Inventory increased Prepaid expenses increased Short term notes payable decreased Accounts payable increased Interest payable increased Income tax payable decreased Other accrued expenses payable decreased Long term notes payable increased Bonds payable increased Capital stock increased Additional Paid in capital increased Retained earnings increased Acquisition of plant assets Purchases of marketable securities Issuance of common stock Loans made to borrowers Collections on loan Purchased of plant assets by issuing a long term debt Book value of plant assets sold Proceeds from sales of marketable securities Proceeds from short term borrowings RM21,000 RM 5,000 RM30,000 RM 1,000 RM10,000 RM 3,000 RM10,000 RM15,000 RM 7,000 RM 2,000 RM 6,000 RM40,000 RM100,000 RM10,000 RM 40,000 RM 25,000 RM160,000 RM 65,000 RM50,000 RM17,000 RM 12,000 RM40,000 RM44,000 RM40,000 RM45,000 Payment of dividends Issuance of bond payable Settlement of short term debts Income taxes paid Interest paid RM40,000 RM100,000 RM 55,000 RM 38,000 RM 28,000 The following selected data for Alisya Corporation for the year ended 30 June 2013 is available for the preparation of the statement of cashflow. Sales revenue RM900,000 RM 6,000 Interest revenue Cost of goods RM500,000 sold Loss on sale of RM 4,000 marketable securities Operating RM 300,000 expenses Interest expense RM 35,000 Dividend RM 3,000 revenue Gain on sale of RM 31,000 Plant assets tax RM 36,000 Income expense The Cash account began the year with a balance of RM20,000 and ended the year with a balance of RM 55,000. Operating expenses is inclusive of RM 40,000 for depreciation Other information are : Marketable securities increased Note receivable increased Accounts receivable increased Accrued interest receivable decreased Inventory increased Prepaid expenses increased Short term notes payable decreased Accounts payable increased Interest payable increased Income tax payable decreased Other accrued expenses payable decreased Long term notes payable increased Bonds payable increased Capital stock increased Additional Paid in capital increased Retained earnings increased Acquisition of plant assets Purchases of marketable securities Issuance of common stock Loans made to borrowers Collections on loan Purchased of plant assets by issuing a long term debt Book value of plant assets sold Proceeds from sales of marketable securities Proceeds from short term borrowings RM21,000 RM 5,000 RM30,000 RM 1,000 RM10,000 RM 3,000 RM10,000 RM15,000 RM 7,000 RM 2,000 RM 6,000 RM40,000 RM100,000 RM10,000 RM 40,000 RM 25,000 RM160,000 RM 65,000 RM50,000 RM17,000 RM 12,000 RM40,000 RM44,000 RM40,000 RM45,000 Payment of dividends Issuance of bond payable Settlement of short term debts Income taxes paid Interest paid RM40,000 RM100,000 RM 55,000 RM 38,000 RM 28,000