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Accounts receivable Inventories Prepaid operating expenses 60,000 75,000 16,500 70,500 76,500 12,000 209,800 670,900 224,000 591,500 Total assets Shareholders' Equity: Ordinary share capital Retained profit

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Accounts receivable Inventories Prepaid operating expenses 60,000 75,000 16,500 70,500 76,500 12,000 209,800 670,900 224,000 591,500 Total assets Shareholders' Equity: Ordinary share capital Retained profit 290,000 245,500 250,000 234,300 535,500 484,300 Non current liabilities: 9% Debentures 30,000 Current liabilities: Accounts payable Tax payable Dividend payable 91,000 10,000 4,400 97,700 9,500 105,400 107,200 Total equity and liabilities 670,900 591,500 The following information relates to the year ended 31 December 2019: a. Marketable securities that do not qualify as cash equivalents were purchased during the year. b. A building costing RM40,000 with a book value of RM10,000 was totally destroyed by fire in March 2019. The insurance company paid RM10,000 cash as compensation. A new building was then constructed at a cost of RM105,000. c. Long term investment costing RM96,000 was disposed at a profit of RM6,500. d. A piece of land was acquired for RM108,500. The payment was settled through a cash payment of RM68,500 and the balance in the form of ordinary shares of RM1 each. A new machinery was purchased for cash. f. 9% Debentures were issued at par value. Required: Prepare a cash flow statement of Arowana Bhd using the direct method for the year ended 31 December 2019. Show the notes of the cash and cash equivalents, and the statement of reconciliation of cash flows from operations with the net profit for the period. e. 1. Arowana Bhd, a public listed company, has a registered capital of 3,000,000 ordinary shares of RM1 each fully paid. You are given the statement of profit or loss for the year ended 31 December 2019 and statement of financial position for the two years ended 31 December 2018 and 31 December 2019. Arowana Bhd Statement of Profit or Loss for the year ended 31 December 2019 RM RM Sales 753,800 Less: Cost of goods sold 524,100 Gross profit 229,700 Less: Expenses Operating expenses (146,400) Depreciation and amortization expenses (25,900) Interest expenses (3,600) (175,900) Operating income 53,800 Gain on sale of long term investment 6.500 Profit before tax 60,300 Tax expense (24,000) Profit after tax 36,300 Retained profit as at 31 December 2018 234,300 270,600 Dividends (25,100) Retained profit as at 31 December 2019 245,500 Arowana Bhd Statement of Financial Position as at 31 December 2019 2018 RM RM RM Non current assets: Land 183,500 75,000 Buildings 290,000 225,000 Less: Accumulated depreciation (130,600) (155,000) Machinery and equipment 132,000 120.000 Less: Accumulated depreciation (58,800) (43,500) 416,100 221,500 Investments (at cost) 10,000 106,000 Patents 35,000 40,000 Current assets: Cash in hand 33.000 35,000 Cash at bank 13,300 20,000 Marketable securities 12,000 10,000 RM Page 10 of 16

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