2.

	Syarikat Sentosa Comparative Balance Sheet as at 31 December
	20X9 (RM)		20X8 (RM)
ASSETS
Non-Current Assets		130,000		165,000
Land
Equipment	200,000		175,000
(-) Accumulated depreciation	(60,000)	140,000	(42,000)	133,000
Building	250,000		250,000
(-) Accumulated depreciation	(75,000)	175,000	(50,000)	200,000
Total non-current assets		445,000		498,000
Current Assets
Cash	37,000		49,500
Accounts receivable	80,000		65,000
Inventory	121,000		130,000
Prepaid insurance	12,110		14,550
Total current assets		250,110		259,050
TOTAL ASSETS		695,110		757,050
EQUITY AND LIABILITIES
Equity
Ordinary shares	280,000		250,000
Retained earnings	138,110		191,050
Total Equity		418,110		441,050
LIABILITIES
Non-current Liabilities
Bonds payable	235,000		265,000
Total non-current liabilities		235,000		265,000
Current Liabilities
Accounts payable	42,000		51,000
Total current liabilities		42,000		51,000
TOTAL LIABILITIES		277,000		316,000
TOTAL EQUITY AND LIABILITIES		695,110		757,050

Additional information:

1.Operating expenses include depreciation expense of RM50,000 and charges from prepaid expenses of RM4,200.

2.Land was sold for cash at cost.

3.Profit for the period 20X9 was RM35,300.

4.Equipment was purchased for RM55,000 cash. In addition, equipment costing RM40,000 with a book value of RM23,000 was sold for RM24,000 cash.

5.Bonds were converted at face value by issuing 30,000 ordinary shares of RM1 par value.

Net sales in 20X9 were RM67,000.

Required:

Prepare the consolidated cash flow statement of Syarikat Sentosa for the year ended 20X9 using the indirect method. ( Total 20 MARKS )