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GALAKSI BERHAD has prepared the following comparative statement of financial position for 2014 and 2015 as follows: GALAKSI BERHAD Comparative Statements of Financial Position as

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GALAKSI BERHAD has prepared the following comparative statement of financial position for 2014 and 2015 as follows: GALAKSI BERHAD Comparative Statements of Financial Position as at 31 December The Statement of Comprehensive income for GALAKSI BERHAD is as follows: Additional information: 1. Investment will mature within one-month. 2. During the year, the company sold an asset that cost RM60,000. The asset were purchased in 2006 and had been depreciated by RM35,000 at the date of disposal. There were no other property, plant and equipment sold within the year. 3. Cash dividends were declared and paid during the year. Required: a) Prepare a statement of cash flows for GALAKSI BERHAD for the year ended 31 December 2015 using indirect method. Please show all the relevant workings or ledgers. (22 marks) b) Explain in what situation the investment should be treated as cash and cash equivalent item. Give ONE (1) example for cash and cash equivalent item other than investment

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