EBAB 123. Interim Semester, 2020/202/ QUESTION 3 [34 MARKSI The following information was extracted from Mesra Bhd for the year ended 31 March 2020 Beginning cash balances as at 1 April 2019 Cash received from customers Purchase of property and equipment Proceed from line of credit Cash paid for merchandise Payment on line of credit Cash paid to employees Proceeds from long term debt Payments on long term debt Cash paid for rental Cash paid for income taxes Cash received from sale of heavy machinery Cash advances and loan made to Mr Ramasamy Cash received from interest and dividends collected RM 10,000 82.500 150,000 8,000 15.000 10,000 25,000 99,500 4,000 500 1,500 30,000 16,000 14,000 Required: Prepare the Statement of Cash Flow for the year ended 31 March 2020 using the direct method. 120 Marks b) Explain any THREE (3) purposes of a cash flow statement. 16 Marks c) Describe any TWO (2) advantages and TWO (2) disadvantages of cash flow statement 18 Marks -END OF QUESTION PAPER- Page 5 of 5