Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel G. Short

3rd Edition

0072458836, 978-0072458831

More Books

Students also viewed these Accounting questions

Question

What is conversion?

Answered: 1 week ago