3 Part A I Umar Company provided the following accounts balances for the year 2019 and 2020. Cash Accounts Receivable 2020 (RM) 2019 (RM) 66,000 20,000 36,000 28,000 Inventories 50,000 36,000 Prepaid Insurance 12,000 18,000 Office Equipment 120,000 64,000 Accumulated Depreciation - Office Equipment 40,000 28,000 Long-term Investments 0 36,000 Ordinary Share Capital 80,000 46,000 Retained Earnings 56,000 20,000 Bonds Payable Accounts Payable 74,000 94,000 34,000 14,000 Additional information: 1. Sales and expenses for the year ending 31 December 2020 were RM240,000 and RM174,000 respectively. I 2. The company sold the long-term investments for RM28,000. 3. Dividends were declared and paid during the year for RM30,000 by cash. Required: Prepare a statement of cash flows until operating activities section for the year ended 31 December 2020 using the indirect method. Show necessary workings. (12 marks) Part B Timothy Company lost the whole of his inventory in a fire on 20 June 2020. The last time that stocktaking had been done was on 31 December 2019, the last date of the statement of financial position, when the inventory was valued at cost of RM18,300. Purchases from then until 20 June 2020 amounted to RM75,500 and sales in that period were RM112,000. All sales were made at a uniform gross profit margin of 30%. Required: Prepare the Trading Account Section of the Profit or Loss Statement for the period from 1 January 2020 until 20 June 2020. Show necessary workings. (13 marks)