QQUESTION 3 SintokTech Bhd develops and markets semiconductor-related products. The comparative Statement of Financial Position for SintokTech Bhd as at 31 December 2021 were as follows: CURRENT ASSETS Inventory Accounts receivable Cash SintokTech Bhd Statement of Financial Position As at 31 December 2021 NON-CURRENT ASSETS 2021 2020 RM RM 8,460,000 6,345,000 6,521,250 3,877,500 37,717,500 9,165,000 52,698,750 19,387,500 Equity investment -0- 2,115,000 Building 8,250,000 20,973,750 Less: Accumulated depreciation- -0- (4,230,000) building Equipment 31,725,000 14,100,000 Less: Accumulated depreciation- (1,410,000) (3,172,500) equipment Intangible assets (net) 3,525,000 4,406,250 42,090,000 34,192,500 TOTAL ASSETS 94,788,750 53,580,000 EQUITY Share capital Retained earnings Total equity CURRENT LIABILITIES 38,565,000 23,265,000 14,628,750 4,230,000 53,193,750 27,495,000 Accounts payable 3,525,000 2,115,000 Dividends payable -0- 3,525,000 Short-term notes payable 2,115,000 2,820,000 5,640,000 8,460,000 NON-CURRENT LIABILITY Long-term notes payable TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 35,955,000 17,625,000 41,595,000 26,085,000 94,788,750 53,580,000 7 BKAR1013 Financial Accounting & Reporting I 4. 5. 6. Additional information: 1. Equity investments were sold at RM1,198,500 above their cost. Dividends paid during the year were RM3,525,000. 2. 3. Sintok Tech Bhd owned a building at the beginning of the financial year. On 1 January 2021, the building was sold for RM22,560,000. A new building was acquired on 30 December 2021 by issuing 3.3 million shares at RM2.50 per share. An equipment was sold for RM1,762,500. The equipment had a cost of RM7,755,000 and was 40% depreciated at the time of disposal. No disposal or new purchase of intangible assets during the year 2021. A long-term note for RM25,380,000 was issued for the acquisition of new equipment. 7. RM7,050,000 of the long-term note payable were paid by issuing ordinary shares. 8. Interest expense of RM1,410,000 and income tax expense of RM4,582,500 were paid in cash. 9. Profit before tax for the year 2021 was RM14,981,250. Included in the determination of the profit were as follows: RM Depreciation expenses 1,339,500 Loss on sale of equipment 2,890,500 Gain on sale of building 5,816,250 Gain on sale of equity investment 1,198,500 REQUIRED: Prepare the Statement of Cash Flows for Sintok Tech Bhd for the year ended 31 December 2021 using the indirect method in accordance with MFRS 107 Statement of Cash Flows.