QUESTION 2 (30 Marks) The consolidated accounts of Tanjung Bhd for the year ended 31 December 2019 is as follows: Group Statement of Financial Position for the years ended 31 December 2019 2019 2018 RM RM Property Plant & Equipment (Net Book Value) 838,000 577,000 Investment in Associate 300,000 150,000 Investment Properties 70,000 60,000 Goodwill on consolidation 104,140 55,000 Current Assets Finished Goods 132,000 100,000 Trade Debtors 196,000 117,000 Cash & Cash Equivalents 90,000 57.000 1,730,140 1,116,000 Equity & Long Term Liabilities Ordinary shares of RM1 each 670,000 470,000 Forex Reserves 44,000 44,000 Debentures 150,000 94,000 Retained profits 400,000 206,000 1,264,000 814,000 Non-Controlling Interest 170,000 120,000 Current Liabilities Other Payables 45,000 65,000 Proposed Dividend 75,000 70,000 Deferred Tax Liability 29,140 15,000 Tax Payable 20,000 5,000 Trade Creditors 127,000 27,000 1,730,140 1,116,000 Consolidated Statement of Comprehensive Income for the vear ended 31 December 2019 RM Turnover 995,000 Cost of Sales (350,000) Gross Profit 645,000 Marketing expenses (60,000) Distribution Expenses (70,000) Administration expenses (10,000) Finance costs (25,000) Operating profit 480,000 Share of profits of associated companies 20,000 Profit before tax 500,000 Tax (74,000) Profit after tax 426,000 Profit after tax attributable to: Equity holders of parent 299,200 Non-Controlling Interest 126,800 426,000 Additional Information: i) Dividend proposed by Tanjung Bhd during the year was RM 15,000. ii) Included in the expenses is depreciation of fixed assets amounting to RM 40,000. iii) On 1 November 2019, Tanjung Bhd acquired a 90% holding in Indah Bhd for a consideration of RM 300,000. The purchase price was paid in cash. On that date, the net assets of Indah Bhd were as follows: RM Cash & Bank 49,200 Plant & Equipment 106,000 Finished Goods 90,200 Trade Debtors 30,000 Trade Creditors 30,000 iv) During the year, Tanjung Bhd acquired a 35% interest in Baru Bhd by payment of cash of RM 140,000 vi) During the year fixed assets with of net book value of RM 55,000 was sold for RM 70,000. vii) The current tax expense for the year includes RM 60,000 for income tax and RM 14,000 for deferred tax Required: a) Prepare the consolidated cash flow statement for the year ended 31 December 2019 using the direct method. (18 marks) b) Show the reconciliation of profit before tax to cash flow from operations. (5 marks) c) Show the relevant workings for operating, investing and financing activities. (7 marks) QUESTION 2 (30 Marks) The consolidated accounts of Tanjung Bhd for the year ended 31 December 2019 is as follows: Group Statement of Financial Position for the years ended 31 December 2019 2019 2018 RM RM Property Plant & Equipment (Net Book Value) 838,000 577,000 Investment in Associate 300,000 150,000 Investment Properties 70,000 60,000 Goodwill on consolidation 104,140 55,000 Current Assets Finished Goods 132,000 100,000 Trade Debtors 196,000 117,000 Cash & Cash Equivalents 90,000 57.000 1,730,140 1,116,000 Equity & Long Term Liabilities Ordinary shares of RM1 each 670,000 470,000 Forex Reserves 44,000 44,000 Debentures 150,000 94,000 Retained profits 400,000 206,000 1,264,000 814,000 Non-Controlling Interest 170,000 120,000 Current Liabilities Other Payables 45,000 65,000 Proposed Dividend 75,000 70,000 Deferred Tax Liability 29,140 15,000 Tax Payable 20,000 5,000 Trade Creditors 127,000 27,000 1,730,140 1,116,000 Consolidated Statement of Comprehensive Income for the vear ended 31 December 2019 RM Turnover 995,000 Cost of Sales (350,000) Gross Profit 645,000 Marketing expenses (60,000) Distribution Expenses (70,000) Administration expenses (10,000) Finance costs (25,000) Operating profit 480,000 Share of profits of associated companies 20,000 Profit before tax 500,000 Tax (74,000) Profit after tax 426,000 Profit after tax attributable to: Equity holders of parent 299,200 Non-Controlling Interest 126,800 426,000 Additional Information: i) Dividend proposed by Tanjung Bhd during the year was RM 15,000. ii) Included in the expenses is depreciation of fixed assets amounting to RM 40,000. iii) On 1 November 2019, Tanjung Bhd acquired a 90% holding in Indah Bhd for a consideration of RM 300,000. The purchase price was paid in cash. On that date, the net assets of Indah Bhd were as follows: RM Cash & Bank 49,200 Plant & Equipment 106,000 Finished Goods 90,200 Trade Debtors 30,000 Trade Creditors 30,000 iv) During the year, Tanjung Bhd acquired a 35% interest in Baru Bhd by payment of cash of RM 140,000 vi) During the year fixed assets with of net book value of RM 55,000 was sold for RM 70,000. vii) The current tax expense for the year includes RM 60,000 for income tax and RM 14,000 for deferred tax Required: a) Prepare the consolidated cash flow statement for the year ended 31 December 2019 using the direct method. (18 marks) b) Show the reconciliation of profit before tax to cash flow from operations. (5 marks) c) Show the relevant workings for operating, investing and financing activities. (7 marks)
