Corporate Accounting cash flow statement

The consolidated accounts of Solar Holdings Bhd for the year ended 31 March 2021 is as follows:

Group Statement of Financial Position for the years ended 31 March 2021

	2021 RM	2020 RM
Fixed Assets (Net Book Value)	1,224,000	630,000
Investment in Associate	300,000	150,000
Other Investments	50,000	30,000
Goodwill on consolidation	330,000	85,000
Current Assets Inventory	120,000	100,000
Trade Receivables	200,000	120,000
Cash & Cash Equivalents	125,000	60,000
	2,349,000	1,175,000
Equity & Long Term Liabilities Ordinary shares of RM1 each	920,000	470,000
Capital Reserves	50,000	50,000
Long term loans	150,000	94,000
Retained profits	380,000	206,000
	1,500,000	820,000
Non-Controlling Interest	350,000	120,000
Current Liabilities Other Payables	80,000	105,000
Proposed Dividend	90,000	70,000
Deferred Tax Liability	31,000	15,000
Tax Payable	53,000	5,000
Trade Payables	245,000	40,000
	2,349,000	1,175,000

Consolidated Statement of Comprehensive Income for the year ended 31 March 2021

RM

Revenue	1,450,000
Cost of Sales	(450,000)
Gross Profit	1,000,000
Advertising expenses	(75,000)
Distribution Expenses	(89,000)
Administration expenses	(190,000)
Dividend Income	7,000
Finance costs	(48,000)
Operating profit	605,000
Share of profits of associated companies	35,000
Profit before tax	640,000
Tax	(105,000)
Profit after tax	535,000
Profit after tax attributable to:
Equity holders of parent	369,000
Non-Controlling Interest	166,000
Additional Information:	535,000

1. On 1 April 2020, Solar Holdings Bhd acquired a 55% holding of Sun Bhd for a consideration of RM500,000. The purchase price was paid in cash. On that date, the net assets of Sun Bhd were as follows:

RM

Cash & Bank	50,000
Plant & Equipment	60,000
Inventory	100,000
Trade Receivables	50,000
Trade Creditors	(80,000)

2. During the year, Solar Holdings Bhd acquired a 25% interest in Astral Bhd by payment of cash of RM200,000.
3. During the year fixed assets with of net book value of RM90,000 was sold for RM 120,000.
4. Included in the expenses is depreciation of fixed assets amounting to RM150,000.
5. Dividend proposed by Solar Holdings Bhd during the year was RM95,000.
6. The current tax expense for the year includes RM90,000 for income tax and RM15,000 for deferred tax.

Required:

1. Prepare the consolidated cash flow statement for the year ended 31 March 2021 using the Direct Method. (26 marks)

Show the reconcilliation of profit before tax to cash flow from operations.