QUESTION 2 Pandan Bhd has several investments in subsidiary and associate's entities. The Consolidated Statement of Financial Position of the group as at 31 December 2019 and 2018 are shown as follows: 2019 2018 RM million RM million Property, Plant and Equipment 972.5 714.9 Goodwill 44 30 Patent 47.28 Investment in associate 26.67 26.5 Investment Property 75.05 7.5 Inventories 26.5 10 Trade receivable 22.25 21 Bank 38 32 Short-term investments 10 1,262.25 841.9 Ordinary share capital 704 480 General reserve 150 150 Retained profit 200 149.5 Non-controlling interest 157 50 6% Debentures 25 Trade payable 9.7 2.9 Bank overdraft 10 5 Tax payable 2.55 1.5 Interest payable 4 3 Total 1,262.25 841.9 Total Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 9 ACIJUL 2021 SET 1/FAR610/620 Additional information: 1. On 1 March 2019, Pandan Bhd acquired 60% of the ordinary shares in Kenanga Bhd by issuing ordinary shares worth RM130 million. The fair value of the net assets of Kenanga Bhd on that date was as follows: Property, Plant and Equipment Inventories Trade receivable Bank Trade payable Tax payable RM million 200 1.60 1.75 2.90 0.20 0.05 2. During the year, Pandan Bhd also acquired 40% interest in a new associate, Malim Bhd for a cash consideration of RM25 million. 3. Administrative expenses include a depreciation charge of RM12.5 million. 4. The non-controlling interest in Kenanga Bhd is measured at fair value and it was valued at RM90 million on the date of acquisition. 5. Short-term investments qualify as cash equivalent. 6. The Consolidated Statement of Profit or Loss of Pandan Bhd for the year ended 31 December 2019 is as follows: RM million Turnover 565 Cost of sales (226) Gross Profit 339 Dividend from other investments 7.54 Administrative expenses (162.99) Sales and distribution cost (94.5) Finance cost (1.5) Share of profit of associate 1.25 Profit before tax 88.8 Taxation 2.8 Profit for the year 86 Profit after tax attributable to: Shareholders of the parent Non-controlling interest 64 22 Required: b. Prepare the Consolidated Statement of Cash Flow of Pandan Bhd for the year ended 31 December 2019 using the INDIRECT METHOD. (21 marks) QUESTION 2 Pandan Bhd has several investments in subsidiary and associate's entities. The Consolidated Statement of Financial Position of the group as at 31 December 2019 and 2018 are shown as follows: 2019 2018 RM million RM million Property, Plant and Equipment 972.5 714.9 Goodwill 44 30 Patent 47.28 Investment in associate 26.67 26.5 Investment Property 75.05 7.5 Inventories 26.5 10 Trade receivable 22.25 21 Bank 38 32 Short-term investments 10 1,262.25 841.9 Ordinary share capital 704 480 General reserve 150 150 Retained profit 200 149.5 Non-controlling interest 157 50 6% Debentures 25 Trade payable 9.7 2.9 Bank overdraft 10 5 Tax payable 2.55 1.5 Interest payable 4 3 Total 1,262.25 841.9 Total Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 9 ACIJUL 2021 SET 1/FAR610/620 Additional information: 1. On 1 March 2019, Pandan Bhd acquired 60% of the ordinary shares in Kenanga Bhd by issuing ordinary shares worth RM130 million. The fair value of the net assets of Kenanga Bhd on that date was as follows: Property, Plant and Equipment Inventories Trade receivable Bank Trade payable Tax payable RM million 200 1.60 1.75 2.90 0.20 0.05 2. During the year, Pandan Bhd also acquired 40% interest in a new associate, Malim Bhd for a cash consideration of RM25 million. 3. Administrative expenses include a depreciation charge of RM12.5 million. 4. The non-controlling interest in Kenanga Bhd is measured at fair value and it was valued at RM90 million on the date of acquisition. 5. Short-term investments qualify as cash equivalent. 6. The Consolidated Statement of Profit or Loss of Pandan Bhd for the year ended 31 December 2019 is as follows: RM million Turnover 565 Cost of sales (226) Gross Profit 339 Dividend from other investments 7.54 Administrative expenses (162.99) Sales and distribution cost (94.5) Finance cost (1.5) Share of profit of associate 1.25 Profit before tax 88.8 Taxation 2.8 Profit for the year 86 Profit after tax attributable to: Shareholders of the parent Non-controlling interest 64 22 Required: b. Prepare the Consolidated Statement of Cash Flow of Pandan Bhd for the year ended 31 December 2019 using the INDIRECT METHOD. (21 marks)