EBAB 123, Interim Semester, 2020/2021 QUESTION 3 34 MARKS] The following information was extracted from Mesra Bhd for the year ended 31 March 2020. RM Beginning cash balances as at 1 April 2019 10,000 Cash received from customers 82,500 Purchase of property and equipment 150,000 Proceed from line of credit 8,000 Cash paid for merchandise 15,000 Payment on line of credit 10,000 Cash paid to employees 25,000 Proceeds from long term debt 99,500 Payments on long term debt 4,000 Cash paid for rental 500 Cash paid for income taxes 1,500 Cash received from sale of heavy machinery 30,000 Cash advances and loan made to Mr Ramasamy 16,000 Cash received from interest and dividends collected 14,000 Required: a) Prepare the Statement of Cash Flow for the year ended 31 March 2020 using the direct method. [20 Marks] b) Explain any THREE (3) purposes of a cash flow statement. [6 Marks] c) Describe any TWO (2) advantages and TWO (2) disadvantages of cash flow statement. [8 Marks] -END OF QUESTION PAPER- Page 5 of 5