Question 2

The summarised financial statements for Tesa Bhd are as follows:

Statement of profit or loss extractfor the yearended 30 September 2021
	RM'000
Profit fromoperations	154
Finance cost(include lease interest)	(44)
Profit beforetax	110
Net tax credit	10
Profit for the year	120

Statements of financial position as at 30 September 2020 and 30 September 2021
		2021		2020
	Note	RM'000	RM'000	RM'000	RM'000
Non-current assets	(i)		2,120		3,160
Current assets
Inventories		510		370
Trade receivables		620		520
Cash andbank		370	1,500	130	1,020
Total assets			3,620		4,180
Equity and liabilities
Ordinary sharesof RM1 each			1,200		1,200
Revaluation reserve	(i)		-		320
Retained earnings			410		170
			1,610		1,690
Non-current liabilities
Lease liability		400		340
10% loan notes		440		980
Deferred tax		40	880	100	1,420
Current liabilities
Trade payables		930		670
Lease liability	(i)	180		160
Current tax payable		20	1,130	240	1,070
Total equityand liabilities			3,620		4,180

You are provided with the followingadditional notes:

1. The details of the non-current assets are as follows:

	Cost	Accumulated depreciation	Carrying value
	RM'000	RM'000	RM'000
30 September 2020	4,040	880	3,160
30 September 2021	3,200	1,080	2,120

During the year Tesa Bhd sold a building for its fair value of RM2.4 million. At the date of sale it had a carrying amount of RM1.48 million based on a previous revaluation of RM1.72 millionless depreciation of RM240,000 since the revaluation. The profit on the sale of the building has been included in operating profit. The surplus on the revaluation related entirely to the building. Tesa Bhd transferred the whole revaluation surplus to retained earnings when the building was disposedof. No other disposals of non-current assetswere made duringthe year.

Plant acquired under leases during the year was RM300,000 and has been included within non-current assets.

1. Tesa Bhd paid an interimdividend to its shareholders duringthe year.

Required:

1. Prepare a statement of cash flows of Tesa Bhd for the year ended 30 September 2021 using the indirect method. You are required to show all the relevant working.

1. Financial statements are prepared on the accrualbasis of accounting. Discuss whether the information presented in the statement of cash flows has a c