Given below are the Statements of Financial Position and the Statement of Profit or Loss for BA107 Trading Bhd:

2020

(RM)

Sales 505,000

Cost of sales (105,000)

Gross profit 400,000

Expenses (252,000)

Profit before tax 148,000

Taxation (40,000)

Profit after tax 108,000

2020 2019

(RM) (RM)

Property, plant and equipment 355,000 300,000

Trade receivables 80,000 75,000

Inventory 145,000 120,000

Bank balance 24,500 15,000

604,500 510,000

Ordinary share capital 250,000 250,000

Retained profits 222,500 140,000

472,500 390,000

Other payables 87,000 90,000

Trade payable 45,000 30,000

604,500 510,000

Additional information:

(a) Dividend paid by the Company was RM25,500.

(b) The dividend declared have all been paid. Included in other payables of 2020 is an amount of current tax payable of RM20,000.

(c) Depreciation was RM32,000 and a non-current asset with carrying amount of RM12,500 was disposed of for a cash consideration of RM40,500 during the year. The depreciation and gain on disposal of property, plant and equipment are included in Expenses.

Required:

Prepare the Statement of Cash Flows for the year ended 31 December 2020 by using the direct and indirect methods.