Question 1

Abu Bhd

Statement of profit or loss and other comprehensive income

for the year ended 30 September 2018

RM

Operating profit

80,000

Investment income

12,000

Finance costs

(10,000)

Profit before tax

82,000

Tax

(32,000)

Profit for the year

50,000

Other comprehensive income

Revaluation gain

40,000

Total comprehensive income

90,000

Abu Bhd

Extraction of Statement of Financial Position

as at 30 September 2018

Current assets

2018 (RM)

2017 (RM)

Inventory

30,000

25,000

Receivables

20,000

26,000

Current liabilities

Trade payables

14,000

11,000

Additional information

During the year depreciation of RM90,000 was charged to profit.

Receipts from customers by cash sales, were RM800,000, payments cash to suppliers of raw materials RM400,000, other operating cash payments were RM100,000 and cash paid on behalf and to employees was RM126,000. The interest paid is RM12,000 and taxation paid is RM13,000.

Required:

Using the direct method prepare the operating activities section of the statement of cash flows.