Question
CASH FLOW : QUESTION 1 The following are consolidated financial statements of Grande group. Consolidated statements of financial position as at 31 December 2020 (RM000)
CASH FLOW : QUESTION 1
The following are consolidated financial statements of Grande group.
Consolidated statements of financial position as at 31 December
| 2020 (RM000) | 2021 (RM000) |
Goodwill | 3,830 | 3,460 |
Investment in associate | 460 | 600 |
Property, plant and equipment | 19,910 | 24,540 |
Current assets: Inventory Trade receivables Bank |
1,460 1,420 2,300 |
1,900 1,860 500 |
Total | 29,380 | 32,860 |
|
|
|
Ordinary share capital | 15,500 | 18,900 |
Group retained profits | 6,540 | 7,800 |
Non-controlling interest | 3,400 | 3,660 |
Trade payables | 3,320 | 1,700 |
Tax payables | 620 | 800 |
Total | 29,380 | 32,860 |
Consolidated statement of profit and loss for the year ended 31 December 2021
| RM000 |
Revenue | 12,000 |
-) Cost of sales | (8,060) |
Gross profit | 3,940 |
-) Operating expenses | (2,110) |
+) Share of profits in associate | 80 |
+) Gain from disposal of subsidiary | 670 |
Profit before tax | 2,580 |
Tax group | (600) |
Profit after tax | 1,980 |
Profit after tax attributable to : Shareholders of parent Non-controlling interest |
1,480 500 |
Additional information:
1. Dividends have been paid.
2. Group depreciation on plant, property and equipment was RM1,010,000. Depreciation and goodwill impairment charge are included as part of operating expenses.
3. On 3rd April 2021, Grande disposed of a wholly owned subsidiary, which has a fully impaired goodwill. Grande received a cash payment of RM8 million from the disposal. An extract of the statement of financial position is as follows:
| (RM000) |
Non-current assets | 5,700 |
Inventory | 950 |
Trade receivables | 980 |
Bank | 800 |
Trade payables | (1,100) |
4. On 30 November 2021, Grande acquired 25% ordinary shares of a new associate, Macchiato Sdn Bhd with consideration transferred of cash payment of RM300,000. This newly acquired associate has a bank balance of RM80,000 on the date of acquisition.
Required:
a) Prepare the consolidated statement of cash flows for Grande group for year ended 31 December 2021 using the indirect method. Note: Show ALL relevant workings. (15 marks)
b) Provide your opinion on the cash flow situation of the group of companies above. (4 marks)
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