At the end of December 31, 2020, BR Corporation earned sales revenue of RM115,252,000 from their selling of ice-cream. They also earned revenue of RM362,761,000 on franchise fee and royalty income from their branches in Johor, Malacca, Sabah and Sarawak. However, the cost involved in producing the ice-cream are RM76,877,000. Currently, TR Corporation invest in new machine that can increase their productivity. The depreciation expenses on the machine for ice-cream production as of December,2020 were RM1,556,000. Their office buildings currently on lease which totalled RM100,422,000. General and administrative expenses such as wages and salaries, utilities, and insurance payments were RM130,938,000, RM1,560,000, and RM111,298,000 respectively. The corporation face the effect of interest rate expenses of RM885,000. The company was subjected to 25% of corporate tax.

(a) Based on the above case, construct income statements for BR Corporation for the year ended December 31,2020.

(10 marks)

(b) Below are BR Corporations balance sheet as of December 31,2020 and 2019.

	Dec-31
Assets	2020		2019
Cash and cash equivalents	RM651,598,500		RM208,080,000
Accounts receivable	53,142,000		55,908,000
Notes and other receivables	(19,990,500)		49,152,000
Inventories	97,117,000		80,262,000
Total current assets	761,867,000		393,402,000
Property and equipment, net	182,614,000		182,061,000
Machinery and Equipment	1,177,165,000		1,425,797,000
Vehicles	889,588,000		891,370,000
Land and buildings	106,878,000		164,493,000
Other assets	59,007,000		67,277,000
Total assets	3,197,119,000		3,124,400,000
Liabilities and shareholders equity
Accounts payable		69,398,000	62,671,000
Notes payable		25,000,000	3,582,000
Accruals		31,535,000	30,374,000
Other current liabilities		292,859,000	258,892,000
Total current liabilities		418,792,000	355,519,000
Long-term debt		2,420,600,000	1,795,623,000
Financial lease obligations		512,601,000	536,119,000
Other long-term liabilities		65,869,000	62,189,000
Total liabilities		3,417,862,000	2,749,450,000
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding		0	0
Common stock, $0.001 par value; 475,000,000 shares authorized; 92,668,211 shares issued and 92,641,044 shares outstanding at December 29, 2019		92,000	104,000
Additional paid-in capital		876,557,000	1,093,363,000
Retained Earnings		(1,097,392,000)	(718,517,000)
Total stockholders equity		(220,743,000)	374,950,000
Total liabilities and stockholders equity		3,197,119,000	3,124,400,000

(i) Construct and analyse statement of cash flow for the year ended December 31, 2020.

(10 marks)

(ii) Based on the answer in (i), analyse free cash flow performance of BR Corporation.

(5 marks)

(iii) During epidemic of Covid19, the industry earnings per share in year 2020 and return on equity are RM5.00 and 3 percent, respectively.

Compare and analyse the performance of BR Corporation reflecting the crisis of this epidemic, for the sake of stockholders.