EXERCISE 7: CASH FLOW Flex Company Statement of Profit or Loss for the year ended 31 December 2017 RM RM 750800 269200 481600 sales less: COGS gross profit operating expenses depreciation expenses other expenses income before taxes income taxes expenses net profit 15700 173933 189633 291967 89200 202767 Flex Company Statement of Financial position as at 31 December 2017 RM RM 2017 2016 ASSETS cash account receivables closing inventory land and building equipment accumulated depreciation on equipment Total Assets 58750 20222 165667 50000 57750 46700 305689 28400 25860 140320 40000 37500 31000 241080 20372 2100 40000 157530 6100 25000 LIABILITIES AND EQUITY account payable income taxes payable common stock, RMS par value paid-in capital in excess of par, common stock retained earnings Total Liabilities and equity 68000 175217 305689 20000 32450 241080 Additional information: 1. Purchased equipment for RM20,250 cash. 2. Purchased land for RM10,000 3. Issued 3,000 shares of common stock for RM21 cash per share. 4. Declared and paid RM60,000 in cash dividends. Required: a) Prepare income statement of Cash Flow for year 2017 using direct method b) Prepare income statement of Cash Flow for year 2017 using indirect method