2 [Total: 25 marks] Fantastic Group Berhad bought 70% shares in its subsidiary many years ago. The consolidated financial statements were presented below: Sales Fantastic Group Berhad Consolidated Statement of Profit or Loss and Movement in Retained Earnings for the year ended 31 December 2020 Cost of goods sold Gross profit Interest incomes Operating expenses Operating profit Dividend incomes Interest expenses Net profit before taxation Tax expenses Net profit for the year RM'000 28,400 (8,520) 19,880 220 (4.000) 16,100 900 (730) 16,270 (3,200) 13,070 Net profit attributable to: Non-controlling interest Owners of the parent company 3,921 9,149 13,070 Movements in Group's Retained Profits: Retained profits bif 8,400 Net profits 9,149 Available for appropriation 17.549 Dividends paid (2.700) Retained profits c'f 14,849 Fantastic Group Berhad Consolidated Statement of Financial Position as at 31 December Non-current assets Property, plant and equipment Investment in associate company Investment in shares 2020 RM1000 2019 RM000 17,340 7.920 1,600 3,000 5.000 Current assets Inventories 7,500 5,000 Trade receivables 7,000 3,500 Fixed deposits and short-term deposits 5,500 2.300 Cash in hand and at bank 2,000 1,600 22,000 12.400 Total assets 43.940 25,320 Financed by Ordinary share capital 8,000 7,000 Retained profits 14,849 8,400 22,849 15,400 NCI's equity 6,291 2.520 Non-current liabilities 8% convertible debentures maturing in 2030 6,000 Current liabilities Track payables 5,300 4,600 Bank overdraft 3,500 2,800 8,800 7.400 Total equity and liabilities 43,940 25.320 Additional information: 2 3 Interest expenses consist of debenture interest RM480,000 and the balance for bank overdraft interest The annual depreciation for the group was RM1,370,000 and this ameast was included in the operating expenses. Fixed deposits were regarded as cash and cash equivalent by the group, and the interests received were added onto the principal amounts 4 Dividend received from subsidiary was RM500,000 and this included the amounts for the shareholders of parent company and the minority shareholders. 597 6 8 Income tax for current year had been paid. Dividend incomes were from the investment in shares listed on Bursa Malaysia, The 8% convertible debenture was issued on 1 January 2020 to finance the expansion of the business. Every 1.000 debenture shares can be converted into 500 ordinary shares. The ordinary shares were issued and paid-up at RMI per share. Required: Determine the cash inflows or cash outflows of appropriate accounts for the relevant adjustments. (9.5 marks) (b) Present the Consolidated Statement of Cash Flow for the year-ended 31 December 2020 using the indirect method. (11 marks) (c) Compute the following cash flow ratios of the company and comment on the results: (2) Operating cash flow/current maturities of debentures and loans (ii) Operating cash flow/total debt (i) Operating cash flow per share Operating cash flows Debentures + Loans + Accounts Payables Operating cash flows Total dehts Operating cash flows Total number of shares (4.5 marks)