Lulu Bhd is a public company in Jerantut, Pahang. The statement of financial position as at 31 December 2018 and 2019 are as follows:

2. During the year, plant and machinery costing RM20,000 (accumulated depreciation RM18,000) was disposed.

3. Last years dividend was paid this year and interim dividend paid for the current year was

RM8,500.

4. Taxation expense for the current year was RM12,000.

5. Ordinary shares and preference shares were issued during the current year.

6.Investment was sold at cost and income received from investment amounted to RM2,600.

Required:

1. Prepare a statement of cash flow for Lulu Berhad for the year ended 30 December 2019 using the indirect method.

2. List two (2) situations where a company may increase its number of shares without increasing new funds.

Note: Show all relevant workings

Lulu Berhad Statement of Financial Position as at 31 December 2018 and 2019 NON-CURRENT ASSET 2018 2019 (Notes1 ) 132.000 197.000 Property, plant, and equipment Investment 52.000 48.000 CURRENT ASSET Inventories Trade receivables 30.800 38.200 33,600 24,800 Cash in hand 600 5.000 308,400 251,600 (Notes 2) 100.000 145.000 EQUITY AND LIABILITIES Share capital General reserve Retained profit 30.000 43,000 1,200 1.400 NON CURRENT LIABILITIES Debentures 20.000 16.000 CURRENT LIABILITIES Bank overdraft 48.000 42.000 24.000 Account payable Taxation 27.600 23.400 22.400 6.000 Dividend payable 10.000 251,600 308,400 Additional information for the financial year ended 31 December 2019: 1. Details of the following expenses comprises: RM Distribution Advertising expenses 30,000 Other expenses 37.500 35,800 2.500 Administration Wages and salaries Depreciation - Land and building Plant and machinery Director's remuneration Loss on disposal of plant & Machinery 14,000 10,000 1,000 Finance Cost 1.800 Debenture interest Bank interest 4.000 Notes 1 Non-current asset 2018 2019 Land and building Land and building Less : Accumulated depreciation Plant and machinery Less: Accumulated depreciation 90,000 (10,000) 80,000 104,000 (52,000) 52,000 132,000 149,500 (12,500) 137,000 108,000 (48,000) 60,000 197,000 Notes 2 Issued and paid up capital 2018 2019 Ordinary shares 5% preference shares 60,000 40,000 100,000 101,000 44,000 145,000