PART A: PREPARATION OF CASH FLOW STATEMENT The following are the financial statements of TikTok and for the year ended 31 December 2020 TikTok Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 RM Turnover 1,350,000 Cost of goods sold (695.000) Tik Tok Bhd Gross Profils 455.000 lincome from investment 5000 Statement of Financial Position as at 31 December Administrative Expenses (343,000) Financial costs 120,000) 97000 Tax charge for the year (25,000)) Profit for the year 72000 2020 2019 AM Nan Current Assets Property plant and equipment (note 1) Investments 1,270,000 150,000 1.220,000 180,000 Current Assets Inventories Trade receivables Short term investment Hank Cash in hand 59,000 123.750 21,000 116,000 110.250 1.950.000 52,000 115,000 36,000 54,000 33,000 1,690,000 Equity and Liabilities Share Capital Retained Earnings 1,140,000 190,000 7,100,000 140,000 Non Current Liabilities 84 Bank Loan 350.000 270,000 Current Liabilities Trade payables Tax payables Dividend payables 103,500 13,000 $3,500 1.950.000 117,000 11.000 52.000 1.690.000 Note to the accounts: 1. Property, plant and equipment 2020 2019 Land Equipment(cost) Accumulated depreciation Plant and Machinery(cost) Accumulated depreciation Carrying value RM 1170 000 95,000 (59.000) 150,000 (84000) 1.270,000 RM 1100,000 60.000 130.000) 150.000 (G0000 1,220,000 Additional information: 1. Included in administrative expenses are depreciation charged for property plant and equipment and loss on disposal of an equipment for RM2,000. 2. Disposal for one of the equipment cosling RM20,000 with a carrying value of RM9,000 was made for cash, 3. During the year, the directors have proposed a dividend to the existing shareholders, 4. The short-term investments were pan of cash and cash equivalents. REQUIRED: Frepare the statement of cash flow for the year ended 31 December 2020 using the indirect method and in compliance with MERS 107. (22 marks) b. A siatement of cash flow is one of the statutory financial statements presented by companies. The statement has to be prepared in compliance with MFRS 107. identify three (3) purposes of preparing the statement of cash flow