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Please Solve it ASAP Q3 (25 marks) As financial accountant for Merak Kayangan Sdn Bhd, you are responsible for the preparation of a statement of
Please Solve it ASAP
Q3 (25 marks) As financial accountant for Merak Kayangan Sdn Bhd, you are responsible for the preparation of a statement of cash flows for the year ended 31 March 2020 The following information is available. Consolidated Statement of Financial Position as at 31 March 2020 2020 2019 RM million RM'million Non current assets Property, plant and equipment 327 264 123 176 Current assets Inventories Trade receivables Short term investment 95 87 65 30 3 Cash at bank and in hand 29 639 557 230 120 Equity Share capital Revaluation surplus Retained profit 97 66 71 41 Non current liabilities 10% debentures 100 150 Current liabilities Bank overdraft Trade payable Interest payable Income tax payable 22 70 126 7 3 39 54 639 557 Consolidated Statement of profit and loss for the year ended 31 March 2020. 2020 RM'million Revenue Cost of sales Gross profit 473 (229) 244 176) Distribution cost Administration expenses Finance income Finance costs (48) 6 (171 Profit before tax Income tax expenses Profit for the year. 109 (47) 62 The following notes are also relevant : 1. Property, plant and equipment PPE held by Merak Kayangan are items of PPE and freehold premises. During 2020 items of PPE which have carrying amount of RM28 at the date of disposal were disposed of, resulting in a loss of RM6m. The assets had previously been revalued taking the credit to the revaluation surplus of RM31m 2. Short term investment The short term investment meet the definition of cash equivalents per IFRA 7 Statement of Cash Flow. 3. 10% debentures On 1 August 2019 RM50 million of 10% debentures was converted into RM50 million of RMI ordinary shares. 4. Depreciation The depreciation charge for the year included in the statement of profit and loss was RM43 million Required: Using the information provided, prepare a consolidated statement of cash flows for Merak Kayangan for the year ended 31 March 2020 using indirect methodStep by Step Solution
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