2020 2019 RM'000 RM'000 RM'000 RM'000 Non-current assets Property, plant and equipment Development expenditure 281.00 45.00 326.00 274.00 37.00 311.00 Current assets: Inventories Trade receivables Investments Bank Total assets 144.00 118.00 20.00 61.00 148.00 123.00 5.00 6.00 343.00 669.00 282.00 593.00 Equity and liabilities: Ordinary shares of RM 1 each Retained earnings 150.00 355.00 505.00 90.00 315.00 405.00 Non-current liabilities: Long term borrowing Deferred tax 36.00 5.00 6.00 7.00 41.00 13.00 Current liabilities: Trade payables Current tax payable 105.00 18.00 123.00 669.00 166.00 9.00 175.00 593.00 Statement of Profit or Loss for the year ended 31 December 2020 RM'000 Revenue 455.20 Less: Cost of sales 333.00 Gross profit 122.20 Less: Operating expenses 32.00 90.20 Less: Finance costs 8.00 Profit before tax 82.20 Less: Income tax expense 17.20 Profit after tax for the year 65.00 You are provided with the following additional notes: (1) During the year, amortisation of RM6,000 was charged on development expenditure. (2) Depreciation charged on property, plant and equipment in 2020 totalled RM76,000. During the year, a motor vehicle with a carrying value of RM40,000 was sold at a profit of RM5,000. The gain on disposal was netted off against operating expenses. On 29 December 2020, the company obtained a loan of RM120,000 from a bank to pay for a new motor vehicle. (3) During the year, Delcom Berhad paid an interim dividend and a final dividend to its shareholders. (4) The current asset investments are short term bonds. The company classify them as cash equivalents. Required: (a) Prepare a statement of cash flows of Delcom Berhad for the year ended 31 December 2020 under the indirect method. You are required to show all the relevant workings. (20 marks) (b) Draft suitable notes to the statement of cash flows. (5 marks) (c) The directors of Delcom Berhad consider the statement of cash flows is not useful for their daily operations. You are required to explain the importance of statement of cash flows based on the conceptual framework to the directors of Delcom Berhad. (5 marks) [Total: 30 marks]