ACCSLOO CONFIDENTIAL GUILT value Share premium - Ordinary 18090 Retained earnings 121500 127 500 Total Liabilities and equit 851 700 794 700 Additional information on the year 2012 transactions a . The loss on the cash sale of equipment was RM2 100 b . Sold equipment costing RM51 0 0 , with accumulated depreciation of RM 20 850 . for RM 28 050 cash C . Purchased equipment costing RM113 250 by paying RM38 250 cash and signing a long-term note payable for the balance d . Borrowed RM6 0DO cash by signing a short -term notes payable e . Paid RM 45 000 cash to reduce the long-term notes payable F . Issued 3000 Ordinary shares for RMIT cash per share B . Declared and paid cash dividends of RM63 090 . The company management wants to classify payments for dividends as financing activities Required Prepare a complete statement of cash flows ; report its operating activities using the indirect method . Disclosed any noncash investing and financing activities in a note ( 25 marks ) Analyze and discuss the statement of cash flows prepared , giving special attention to the wisdom of the cash dividend payment ( 8 marks )