4 Set out below are the financial statements of Kembang Bhd, a limited liability company. You have been asked to prepare the company's statement of cash flows, implementing International Accounting Standards 7 (IAS 7 Statement of Cash Flows). Kembang Bbd Statement of comprehensive income for the year ended 31 December 2021 Sales revenue Cost of sales Gross profit Other income: interest received Distribution costs Administrative expenses Interest paid Profit before tax Income tax expense Profit for the year Statement of financial position as at 31 December Non-current assets Property, plant and equipment Intangible assets Investments RM'000 2,553 (1,814) 739 25 (125) (264) (75) 300 (140) 160 2021 RM'000 2020 RM'000 380 305 250 200 25 630 530 Current assets Inventories Receivables 150 102 390 315 Short-term investments Cash in hand 50 - 2 1 592 418 1,222 948 Equity and liabilities Share capital (RM1 ordinary share) 200 150 Share premium account 160 150 Revaluation reserve 100 91 Retained earnings 260 180 720 571 Non-current liabilities Long-term loan 130 50 Environmental provision (Chalk quarry) 40 Current liabilities Trade payables Bank overdraft Taxation 127 119 85 98 120 110 332 327 1,222 948 The following information is available: 1,222 948 1. The proceeds of the sale of non-current asset investments amounted to RM30,000. 2. Fixtures and fittings, with an original cost of RM85,000 and a net book value of RM45,000 were sold for RM32,000 during the year. 3. The following information relates to property, plant and equipment: Cost Accumulated depreciation Net book value 31.12.2021 31.12.2020 RM'000 RM'000 720 595 340 290 380 305 4. On 31 December 2021, Kembang Bhd purchased a chalk quarry from which extraction will take place for five years. At the end of that time. Kembang Bhd will be obliged to close off the quarry and make the area safe. The cost of this has been estimated and discounted to a present value of RM40,000, which is included in the carrying amount of the quarry and shown as a provision. 5. 50,000 RM1 ordinary shares were issued during the year at a premium of RM0.20 per share. 6. The short-term investments are highly liquid and are close to maturity. 7. Dividends of RM80,000 were paid during the year. Required: Prepare a statement of cash flows for the year ended 31 December 2021 using the format laid out in IAS 7. The indirect method is to be applied for operating activities. (25 marks) [Total: 25 Marks]