Question 2

Kaarthik Sdn Bhd is a company that produce products based on soap and detergent. The following is the financial statements on 31 December 2017:

Kaarthik Sdn Bhd

Statement of profit or loss and other comprehensive income

for the year ended 31 December 2017

RM'000

Revenue

5,440

Cost of goods sold

2,000

Gross Profit

3,440

Operating expense:

Depreciation expense

(100)

Salary expense

(410)

Utility expense

(300)

Insurance expense

(300)

Maintenance expense

(100)

Net profit

2,230

Other comprehensive income:

Gain on sale of land

50

Loss on sale of equipment

(20)

Profit before tax

2,260

Kaarthik Sdn Bhd

Statement of financial position

as at 31 December 2017

2017

2016

RM'000

RM'000

ASSETS

Current Assets

Inventories

310

380

Accounts receivable

650

430

Cash and cash equivalents

420

180

Non-current Assets

Land

1,700

1,800

Property, Plant and Equipment

3,300

3,000

Accumulated depreciation

(400)

(300)

5,980

5,490

LIABILITIES

Current Liabilities

Accounts payable

310

390

Owner's Equity

Share Capital

4,200

4,000

Retained earnings

820

550

Non-current Liability

Notes Payable

650

550

5,980

5,490

Composition of cash and cash equivalent as at 31 December:

20172016

(RM'000)(RM'000)

Cash2070

Short-term investments400110

Additional information:

i)Dividends paid for the year amounted to RM1,990,000.

ii)For land as well as property, plant and equipment, the following occurred during the year:

-Purchase machine at cost of RM400,000.

-A piece of land bought for RM100,000 and sold at RM150,000.

-An equipment that cost RM120,000 with a carrying value of RM100,000 was sold for RM80,000.

Required:

Based on the information given, prepare the statement of cash flows for Kaarthik Sdn Bhd for the year ended 31 December 2017.