Lavender Sdn Bhd is a company involved in the manufacture of perfume and its financial statements are as follows:

Lavender Sdn Bhd Statement of Financial Position as at 31 December 2019

	2019	2018
	RM'000	RM'000
Non-Current Assets
Property, Plant & equipment	1,942	1,628
Total Non-Current Assets	1,942	1,628
Current Assets
Inventories	196	129
Trade Receivables	187	199
Cash & Cash equivalents	53	54
Total Current Assets	436	382
Total Assets	2,378	2,010
Equity&Liabilities
Equity
Share Capital	140	100
Share Premium	45	45
Retained earnings	1,499	1,014
Revaluation Surplus	48	26
Total Equity	1,732	1,185
Non-Current Liabilities
Long Term Loan	512	646
Total Non-Current Liabilities	512	646
Current Liabilities
Trade Payables	115	146
Bank Overdraft	0	12
Current Tax Payables	19	21
Total Current Liabilities	134	179
Total Equity & Liabilities	2,378	2,010

Lavender Sdn Bhd Statement of Profit or Loss & Other Comprehensive Income

for the year-ended 31 December 2019

	RM'000
Sales Revenue	3,658
Cost of Good Sold	-2,672
Gross Profit	986
Distribution Cost	-169
Administration Expenses	-157
Finance Costs	-34
Profit before Tax	626
Income Tax Expense	-95
Profit for the year	531
Other Comprehensive Income
Gain on Property Revaluations	22
Other Comprehensive Income for the year, net of tax	22
Total Comprehensive Income for the year, net of tax	553

Additional information:

1. Property, Plant & Equipment with a carrying value of RM200,000 was sold for RM180,000. This asset had originally cost RM250,000.
2. Depreciation of Property, Plant & Equipment during the year amounted to RM98,000.
3. Dividends paid during the year amounted to RM46,000 and are reported in the Statement of Changes in Equity.

1. Prepare a Statement of Cash Flow for the year ended 31 December 2019 using indirect method.

(22 marks)

2. Briefly discuss the usefulness of Statements of Cash Flows in financial reporting.