CASH FLOW - QUESTION 3

The following are the consolidated statements of financial position and consolidated statements of comprehensive income for Jelly Sdn Bhd and Jimbo Sdn Bhd:

Consolidated statements of financial position as at:

	31.3.2020 (RM000)	31.3.2021 (RM000)
Goodwill	1,040	1,160
Property, plant and equipment	5,200	8,120
Investment in associate company	3,600	4,000
Inventory	2,000	3,600
Trade receivables	2,800	2,000
Bank	600	1,200
Total	15,240	20,080
Ordinary share capital	10,000	14,000
Retained profits	1,040	1,320
Non-controlling interest	1,960	2,360
Long term loan	600	800
Trade payables	1.640	1,600
Total	15,240	20,080

Consolidated statement of comprehensive income for the year ended 31.3.2021.

	RM000
Sales	3,576
- Cost of sales	(1,712)
Gross margin	1,864
Administrative expenses	(688)
Interest expenses	(70)
Profit before tax	1,106
Share of profits in associate (less impairment)	220
Profit before tax	1,326
Tax group	(300)
Profit after tax	1,026
Profit after tax attributable to: Shareholders of parent Non-controlling interest	774 252 1,026

Additional information:

1. On 1 December 2020, Jelly acquired a new subsidiary, Lopez Sdn Bhd. Jelly paid RM3 million cash to acquire 85% of the ordinary shares of Lopez. The balances of Jump are given as follows:

	RM000
Property, plant and equipment	2,680
Inventories	560
Trade receivables	432
Bank	240
Liabilities	(620)

2. In the middle of the year the group disposed of one machine with carrying value of RM100,000 for RM60,000. Loss from sale of this machine is included as part of administrative expenses
3. Group depreciation on property, plant and equipment was RM1,200,000.
4. Jelly also acquired a new associate Pistachio Sdn Bhd with the consideration transferred of RM360,000 paid in cash.
5. The group uses partial goodwill and straight-line depreciation method to prepare its accounts.
6. The tax charge for the year has been fully paid.

Required:

1. Prepare calculation of goodwill for acquisition of shares in Lopez Sdn Bhd. (4marks)
2. Prepare the consolidated statement of cash flows using the indirect method for year ended 31 March 2021. (11 marks)