QUESTION 2 Given below is the simplified Statement of Cash Flows for HAIKOM Holdings Bhd. HAIKOM Holdings Bhd Statements of Cash Flows for the financial year ended 30 June 2020 2019 RM000 RM000 Operating activities Profit before tax 219.265 239,696 Total adjustments 40,953 16,641 Operating profit before changes in working capital 260,218 256,337 Increase in inventories (28,669) (49,801) Increase in contract liabilities 5,449 (Increase)/Decrease in trade and other receivables (895) 9,182 (Decrease) Increase in trade and other payables (48,085) (4,500) Cash generated from operations 188,018 211.218 Tax paid (60,886) (60,296) Tax refunded 9 67 Net cash from operating activities 127,141 150,989 Page 7 of 8 202109/FIN301/A 10.455 894 9,582 (50,000) CONFIDENTIAL Investing activities Dividends received from:- Subsidiaries Unit trust funds Interest received Placements of unit trust funds Proceeds from disposal of: property, plant and equipment unit trust funds Purchase of: - intangible assets property, plant and equipment Net cash from/(used in) investing activities 477 143 100.272 (1,068) (26.883) (17,019) (1.154) (50.832) 8,905 (75,660) 137,200 (1,102) (75,660) 119,001 (1,987) Financing activities Dividends paid Drawdowns of short-term bank borrowings Interest paid Repayments of: hire purchase and finance lease obligations - short-term bank borrowings term-loans Net cash used in financing activities (404) (148,351) (2,644) (90,961) (334) (161,195) (2.898) (123,073) W X 1,481 (2.323) Net increase/(decrease) in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year Y z 416,891 V Required: a. Compute the value for V, W, X, Y and Z in the Statement of Cash Flows of HAIKOM Holdings Bhd. Show your workings. What would be the cash balance recorded in the Statement of Financial Position for FY2019 and FY2020 for HAIKOM Holdings Bhd? (6 marks) b. Perform vertical analysis for the cash inflows and outflows in FY2019 and FY2020. Discuss the changes on the sources of fund and uses of fund over the two years. (17 marks) c. Is HAIKOM having healthy cash flows? Explain. (7 marks) (Total: 30 marks QUESTION 2 Given below is the simplified Statement of Cash Flows for HAIKOM Holdings Bhd. HAIKOM Holdings Bhd Statements of Cash Flows for the financial year ended 30 June 2020 2019 RM000 RM000 Operating activities Profit before tax 219.265 239,696 Total adjustments 40,953 16,641 Operating profit before changes in working capital 260,218 256,337 Increase in inventories (28,669) (49,801) Increase in contract liabilities 5,449 (Increase)/Decrease in trade and other receivables (895) 9,182 (Decrease) Increase in trade and other payables (48,085) (4,500) Cash generated from operations 188,018 211.218 Tax paid (60,886) (60,296) Tax refunded 9 67 Net cash from operating activities 127,141 150,989 Page 7 of 8 202109/FIN301/A 10.455 894 9,582 (50,000) CONFIDENTIAL Investing activities Dividends received from:- Subsidiaries Unit trust funds Interest received Placements of unit trust funds Proceeds from disposal of: property, plant and equipment unit trust funds Purchase of: - intangible assets property, plant and equipment Net cash from/(used in) investing activities 477 143 100.272 (1,068) (26.883) (17,019) (1.154) (50.832) 8,905 (75,660) 137,200 (1,102) (75,660) 119,001 (1,987) Financing activities Dividends paid Drawdowns of short-term bank borrowings Interest paid Repayments of: hire purchase and finance lease obligations - short-term bank borrowings term-loans Net cash used in financing activities (404) (148,351) (2,644) (90,961) (334) (161,195) (2.898) (123,073) W X 1,481 (2.323) Net increase/(decrease) in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year Y z 416,891 V Required: a. Compute the value for V, W, X, Y and Z in the Statement of Cash Flows of HAIKOM Holdings Bhd. Show your workings. What would be the cash balance recorded in the Statement of Financial Position for FY2019 and FY2020 for HAIKOM Holdings Bhd? (6 marks) b. Perform vertical analysis for the cash inflows and outflows in FY2019 and FY2020. Discuss the changes on the sources of fund and uses of fund over the two years. (17 marks) c. Is HAIKOM having healthy cash flows? Explain. (7 marks) (Total: 30 marks