Additional information:

1. The current year's depreciation charges for property, plant and equipment of RM600,000 and the amortization charge for the intangible assets of RM460,000 were written off in the administrative costs.

2. Property, plant and equipment costing RM880,000 was acquired during the year. A machinery with a carrying amount of RM480,000 was realised for cash during the year.

3. It is the policy of Ar-Rayyan Bhd to measure its investment property based on fair value model.No new investment property was acquired during the year.

4. Details of the intangible assets movement during the year were as follows:

RM'000

Balance as at 1 April 2018 4,320

Acquired and capitalised during the year 700

Amortisation expense (460)

Balance as at 31 March 2019 4,560

5. Long-term investment at the carrying value of RM1,000,000 was disposed during the current year.

6. Additional equity shares were issued at fair value for cash.

7. Short-term investments are to be considered as cash and cash equivalent.

Required:

a. Prepare Statement of Cash Flow for Ar-Rayyan Bhd for the year ended 31 March 2019 by using the direct method.

QUESTION The following are the financial statements of Ar-Rayyan Bhd: Ar-Rayyan Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 March 2019 RM'000 Revenues 28,800 Cost of sales (11,520) Gross profit 17,280 Administrative costs (2,244) Selling and distribution cost (1,008) Operating profit 14,028 Finance costs (600) Gain on fair value of investment property 50 Investment income 828 Profit on disposal of long-term investment 768 Profit on disposal of property, plant and equipment 276 Profit before tax 15,350 Taxation 3,530) Profit for the year 11,820 Other comprehensive income: Revaluation surplus 200 Total comprehensive income 12,020 Ordinary Asset Retained Shares Revaluation Profit Reserve RM'000 RM'000 RM'000 Balance as at 1 April 2018 25,920 2.000 11,160 Revaluation surplus 200 Issue of shares 2,880 Profit for the year 11,820 Dividend paid (11,400) Balance as at 31 March 2019 28,800 2.200 11,580Ar-Rayyan Bhd Statement of Financial Position as at 31 March 2018 2019 RM'000 RM'000 Non-current assets Property, plant and equipment 30,000 30,000 Investment property 2,400 2,450 Intangible assets 4,320 4,560 Long-term investments 3,000 2,400 39,720 39,410 Current assets Inventories 830 920 Accounts receivable 2,610 2,130 Short-term investments 312 779 Interest receivable 36 19 Tax recoverable 28 Cash 134 3,814 3,950 7,662 TOTAL ASSETS 43,670 47,072 Financed by: Share capital 25,920 28,800 Reserves 13,160 13,780 39,080 42,580 Non-current liabilities Long term loan 2,670 2,540 Current liabilities Accounts payable 1,228 1,440 Short-term loan 432 288 Bank overdraft 190 144 Taxation payable 32 = Accrued interest 36 18 Accrued advertising expenses 34 30 4,590 4,492 TOTAL EQUITY AND LIABILITIES 43,670 47,072Additional information: 1. The current year's depreciation charges for property, plant and equipment of RM600,000 and the amortization charge for the intangible assets of RM460,000 were written off in the administrative costs. 2. Property, plant and equipment costing RM880,000 was acquired during the year. A machinery with a carrying amount of RM480,000 was realised for cash during the year. 3. It is the policy of Ar-Rayyan Bhd to measure its investment property based on fair value model. No new investment property was acquired during the year. 4. Details of the intangible assets movement during the year were as follows: RM'000 Balance as at 1 April 2018 4,320 Acquired and capitalised during the year 700 Amortisation expense (460) Balance as at 31 March 2019 4.560 5. Long-term investment at the carrying value of RM1,000,000 was disposed during the current year. 6. Additional equity shares were issued at fair value for cash. 7. Short-term investments are to be considered as cash and cash equivalent. Required: a. Prepare a Statement of Cash Flow for Ar-Rayyan Bhd for the year ended 31 March 2019 by using the direct method