Apple Bhd: Consolidated Statements of Financial Position as at 31 July:

Non-current assets: Property, plant and equipment Intangible assets Goodwill Financial assets Current assets: Inventory Trade receivables Bank Total assets Equity: Equity shares Retained earnings Non-controlling interest Non-current liabilities: 6% bonds Current liabilities: Trade payables and provisions Bank overdraft Current tax payable Total equity and liabilities

2010 RM Mil 3,680 330 60 210 ----------- 4,280 400 460 - ------------ 860 ------------ 5,140 ----------- 1,900 1,796 ----------- 3,696 50 ----------- 3,746 680 ----------- 680 ----------- 466 168 80 ------------ 714 ----------- ------------ 5,140 ------------

2009 RM Mil 2,400 350 - 180 ----------- 2,930 275 340 230 ------------ 845 ------------ 3,775 ----------- 1,550 1,305 ----------- 2,855 - ----------- 2,855 550 ----------- 550 ----------- 280 - 90 ------------ 370 ----------- ------------ 3,775 ------------

The following notes should be taken into consideration:

1. On 1 December 2009, Apple bought an 80% stake in another entity, Marry Bhd. The cost of this stake was RM200 million, satisfied by Apple issuing 120 million equity shares and RM80 million in cash. The fair value of the net assets acquired on the acquisition date was RM180 million, consisting of the following:

RM Mil

Property, plant and equipment 130

Intangible assets 20

Inventory 25

Cash 20

Trade payables (15)

---------

180

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2. The fair value of the non-controlling interest at the acquisition date was RM47 million. Apple uses the full (fair value) goodwill method in all acquisitions. Goodwill was tested for impairment at 31 July 2010, and any impairment loss was correctly accounted for through operating expenses.
3. Depreciation of property, plant and equipment amounted to RM207 million, charged to operating expenses. Amortization charges of RM45 million relating to intangible assets were also charged to operating expenses.
4. Disposals of property, plant and equipment were made for proceeds of RM140 million, on which gains of RM14 million were recognized. These gains were netted against operating expenses. No disposals of intangible assets were recorded.
5. There were no non-cash adjustments to the 6% bonds. Interest has been paid up to date.
6. Included in the figure for trade payables and provisions at 31 July 2010 is a provision for warranty claims amounting to RM27 million (2009: RM14 million).
7. Equity dividends were paid during the period by Apple and Mary.
8. Financial assets which had cost RM60 million, and had a carrying value on 1 August 2009 of RM75 million, were sold during the year for RM78 million. The gain was netted against finance costs.
9. A bonus issue was made during the year capitalizing RM50m of retained earnings. Other shares were issued for cash, in addition to those to fund the acquisition referred to in note (1) above.

Required:

1. Computation of the goodwill value that arises from the acquisition of Mary Bhds business by Apple Bhd
2. A consolidated Statement of Changes in Equity.
3. A consolidated Statement of Cash Flows showing all the relevant supporting workings.