a) Prepare the statement of cash flows for MAJU Sdn. Bhd. for the year ended 31 August 2021 using the direct method. (Show all calculations)

b) Using the financial statements of MAJU Sdn. Bhd., discuss four main reasons of negative cash flow.

MAJU Sdn. Bhd. is a company involved in selling of consumer products. Below are the company's financial statements: MAJU Sdn. Bhd Statement of Comprehensive Income for the year ended 31 August 2021 RM Sales revenue 1,000,100 Cost of goods sold (700,100) Gross profit 300,000 Operating Expenses Advertising expenses (25,000) Admin expenses (150,000) Depreciation expense (75,000) Other operating expense (20,000) Profit before interest & tax 30,000 Interest expense (50,000) Net profit before tax (20,000) MAJU Sdn. Bhd. Statement of Financial Position as at 31 August 2021 2020 RM Non-current Assets 2021 RM Net Book Value Machinery 500,000 450,000 Net Book Value of Delivery Van 250,000 225,000 100,000 50,000 60,000 140,000 1,000,000 175,000 950,000 Current Assets Cash at Bank Account Receivable Inventory Total Assets Non-current Liabilities Notes Payable Current Liabilities Accounts Payable Admin expenses payable Advertising payable 300,000 230,000 50,000 100,000 20,000 10,000 500,000 500,000 Shareholders' Equity Ordinary share capital Retained earnings Total Liabilities & Equities 140,000 100,000 1,000,000 950,000