Question 1 You are the finance manager of Karta M Berhad. The financial statements of the company for the year ended 30 June are shown below: Comparative Statement of Financial Position as at 30 June

2023 2022 RM RM Cash 126,400 104,500 Accounts receivables 52,800 63,700 Inventories 38,500 27,200 Investment in 18-month fixed deposit 80,000 60,000 Machinery 212,300 144,600 Building 320,000 350,000 Land 620,000 620,000 Accounts payable 93,600 84,500 Tax payable 7,100 4,400 5% long term note payable 300,000 380,000 Retained earnings 449,300 401,100 Ordinary share capital 600,000 500,000

Statement of Profit or Loss for the Year Ended 30 June 2023 RM Sales 830,600 Cost of sales (348,200) Gross profit 482,400 Interest revenue 4,000 Salaries (96,800) Rental (31,200) Interest expense (9,500) Depreciation of machinery (67,300) Depreciation of building (30,000) Gain on sale of machinery 8,000 Profit before tax 259,600 Taxation (52,800) Profit for the year 206,800

Additional Information: The transactions occurred during the year ended 2023: 1. All sales and purchases are on credit. 2. A piece of machinery that cost RM80,000with accumulated depreciation of RM55,000 was sold. The company made a profit of RM8,000 from the sale. 3. A new piece of machinery was purchased to replace the disposed machinery. 4. There is no purchase or disposal of land and buildings. 5. The company declared and paid a dividend of RM158,600 to its ordinary shareholders. 6. The company increased its investment in fixed deposits. 7. Interest revenue is received from investment in fixed deposits. 8. The company issued an additional 20,000 units of ordinary share capital at the price of RM5 each. 9. The company partly paid its 5% note payable.

You are required to: a) Prepare a Statement of Cash Flows of Karta M Berhad for the year ended 30 June 2023 in accordance with MFRS107 using the indirect method.