GROUP PROJECT 1-APR2020 FAR270 QUESTION The following are the financial statements of Ar-Rayyan Bhd: Ar-Rayyan Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 March 2019 RM'000 - Revenues 28,800 Cost of sales (11,520) Gross profit 17,280 Administrative costs (2,244) `Selling and distribution cost (1,008) Operating profit 14,028 Finance costs (600) Gain on fair value of investment property 50 Investment income 828 Profit on disposal of long-term investment 768 Profit on disposal of property, plant and equipment 276 Profit before tax 15,350 Taxation (3,530) Profit for the year 11,820 Other comprehensive income: Revaluation surplus 200 Total comprehensive income 12,020 Ordinary Asset Retained Shares Revaluation Profit Reserve RM'000 RM'000 RM'000 Balance as at 1 April 2018 25,920 2,000 11,160 Revaluation surplus 200 Issue of shares 2,880 Profit for the year 11,820 Dividend paid (11,400) Balance as at 31 March 2019 28,800 2.200 11,580 2GROUP PROJECT 1-APR2020 FAR270 Ar-Rayyan Bhd Statement of Financial Position as at 31 March closing opening 2018 2019 RM'000 RM'000 Non-current assets Property, plant and equipment 30,000 30,000 Investment property 2,400 2,450 Intangible assets 4,320 4,560 Long-term investments 3,000 2,400 2450 39,720 39,410 = 1 Current assets Inventories 830 920 50, 00 Accounts receivable 2,610 2, 130 Short-term investments 312 779 Interest receivable ( cash equivalent ) 36 19 Tax recoverable 28 Cash 134 + 480, 000 cash equivalent ) 3,814 3,950 7,662 TOTAL ASSETS 43,670 47,072 Financed by: Share capital 25,920 28,800 Reserves 13, 160 13,780 39,080 42,580 Non-current liabilities Long term loan 2,670 2,540 Current liabilities Accounts payable 1,228 1,440 Short-term loan 432 288 Bank overdraft 190 144 Taxation payable - 32 - T Accrued interest to 36 $ 18 Accrued advertising expenses 34 30 4,590 4,492 TOTAL EQUITY AND LIABILITIES 43,670 47,072 3GROUP PROJECT 1-APR2020 FAR270 Additional information: The current year's depreciation charges for property, plant and equipment of RM600,000 and the amortization charge for the intangible assets of RM460,000 were written off in the administrative costs. bob? Property, plant and equipment costing RM880,000 was acquired during the year. A machinery with a carrying amount of RM480,000 was realised for cash during the year. O 3. It is the policy of Ar-Rayyan Bhd to measure its investment property based on fair value model. No new investment property was acquired during the year. 4. Details of the intangible assets movement during the year were as follows: RM'000 Balance as at 1 April 2018 4,320 Acquired and capitalised during the year 700 Amortisation expense (460) Balance as at 31 March 2019 4,560 Long-term investment at the carrying value of RM1,000,000 was disposed during the current year. y disposal 6. Additional equity shares were issued at fair value for cash. Short-term investments are to be considered as cash and cash equivalent. Required: a. Prepare a Statement of Cash Flow for Ar-Rayyan Bhd for the year ended 31 March 2019 by using the direct method. b. Prepare a statement reconciling the profit before tax to cash flow from operations. (Show all relevant workings) (Total: 30 marks) 3530 0 32,000 TH END OF QUESTION PAPER