3 The Statement of Financial Position of Neuro World Berhad as at 30 June 2015 and 2016 were as follows: Non-current assets: Land and buildings Plant and machineries Less: Accumulated depreciation Motor Vehicles Less: Accumulated depreciation Investment 2015 RM 2016 RM 280,000 430,000 80,000 60,000 (12,000) 68,000 (10,000) 50,000 40,000 40,000 (4,000) 36,000 (6,000) 34,000 48,000 48,000 Current assets: Inventories 10,000 24,000 Trade receivable 34,000 40,000 Short term investment 32,000 32,000 Bank 30,000 8,000 538,000 666,000 Share capital: Ordinary shares 200,000 240,000 Share premium 20,000 Retained profits 100,000 150,000 Non-current Liabilities: 10% debentures 120,000 120,000 Long-term bank loan 40,000 50,000 Current Liabilities: Accrued wages and salaries 2,000 1,000 Trade payable 30,000 25,000 Tax payable 20,000 30,000 Dividend payable 26,000 30,000 538,000 666,000 Additional information: 1. 2. 3. 4. The increase in the issued share capital was due to the issue of shares at premium. An old machinery was sold for cash of RM20,000. There was no purchase of plant and machinery during the year. Building was purchased for cash. There was no disposal of land and building taken place during the year. The total depreciation charge for the year is RM5,000 and RM3,000 is for plant and machinery. The short-term investment qualifies as cash equivalent. 5. 6. Dividend for the year amounted to RM30,000. 7. For the year ended 30 June 2016 the interest expenses was RM12,000 and taxation expense was RM25,000. Required: a. b. Prepare a Statement of Cashflow for Neuro World Bhd for the year ended 30 June 2016, using the indirect method in accordance with the MFRS 107: Statement of Cashflow. (15 marks) Briefly explain the operating activities under the direct method and give two (2) examples. (5 marks) (Total: 20 marks)