QUESTION 3 (25 MARKS) (a) Consolidated financial statements of Mulus Berhad for the year ended 31 October 2016 are as follows: Consolidated statement of profit or loss and other comprehensive income for the year ended 31 October 2016 Revenue Operating expenses Profit from operations Gain on disposal of subsidiary Finance cost Income from associates Profit before taxation Tax expense Profit for the year Other comprehensive income for the year Re-measurement of post-employment benefits Other comprehensive income from associates Total comprehensive income Profit attributable to: Parent shareholders Non-controlling interest RM'000 20.900 (11,550) 9,350 1,000 (350) 1.150 11,150 (2,250) 8,900 2,000 500 11,400 7.950 950 Total comprehensive income attributable to: Parent shareholders Non-controlling interest 10,200 1,200 11,400 Consolidated statements of financial position as at 31 October: 2016 RM'000 2015 RM'000 Non-current assets Property, plant and equipment Goodwill Investment in associate 25,450 19,300 6,200 50,950 16.250 18,500 5,400 40,150 Current assets Cash and bank Trade and other receivables Inventories 2,100 3,900 4,700 10,700 1,400 3,300 4,350 9,050 Non-current liabilities Loans from banks Deferred tax 5,000 1,500 (6,500) 3,000 1,050 (4,050) Current liabilities Trade and other payables Tax payable Accrued interest 8,000 3,875 125 (12,000) 7,250 3,525 75 (10,850) 43,150 34,300 Equity Ordinary shares (RM1 each) Retained profits Other reserves (including revaluation reserve) Non-controlling interest 15,000 17,550 7,500 3,100 15,000 10,850 5,250 3,200 43,150 34,300 Additional information: (0) During the year, Mulus Berhad acquired 80% voting interest in Giling Berhad for a cash consideration of RM 15 million. On the date of acquisition, the non-controlling interest was measured at its fair value of RM3.4 million. The fair value of net assets of Giling Berhad at acquisition date comprised of the following: Property, plant and equipment Cash and bank Trade and other receivables Inventory Trade and other payables Loans from banks Tax payable RM'000 12,800 800 2,400 1,500 (1,800) (400) (400) 14,900 (ii) During the year, Mulus Berhad also disposed of its 60% voting interest in Bario Berhad and recorded a cash proceeds for RM8.5 million. This subsidiary had been acquired several years ago for RM6 million. At acquisition date, the fair value of Bario's net assets and non-controlling interest was RM7.3 million and RM3.2 million respectively. On the date of disposal, the net assets of Bario had a carrying value in the consolidated statement of financial position as follows: Property, plant and equipment Cash and bank Trade and other receivables Inventory Trade and other payables Loans from banks RM'000 7,250 500 1,500 1,650 (800) (300) 9,800 (iii) Property, plant and equipment: Depreciation charge for the year is RM3.85 million. A plant having carrying value of RM 2.5 million was sold for RM2.75 million. Gain on disposal has been credited to operating expenses. On the basis of the professional valuation report, Mulus Berhad recognised an increment of RM2 million in the value of property, plant and equipment. During the year, RM1.25 million was paid as final dividend to ordinary shareholders. Required: Prepare consolidated statement of cash flow of Mulus Berhad for the year ended 31 October 2016 using the indirect method. (25 marks) QUESTION 3 (25 MARKS) (a) Consolidated financial statements of Mulus Berhad for the year ended 31 October 2016 are as follows: Consolidated statement of profit or loss and other comprehensive income for the year ended 31 October 2016 Revenue Operating expenses Profit from operations Gain on disposal of subsidiary Finance cost Income from associates Profit before taxation Tax expense Profit for the year Other comprehensive income for the year Re-measurement of post-employment benefits Other comprehensive income from associates Total comprehensive income Profit attributable to: Parent shareholders Non-controlling interest RM'000 20.900 (11,550) 9,350 1,000 (350) 1.150 11,150 (2,250) 8,900 2,000 500 11,400 7.950 950 Total comprehensive income attributable to: Parent shareholders Non-controlling interest 10,200 1,200 11,400 Consolidated statements of financial position as at 31 October: 2016 RM'000 2015 RM'000 Non-current assets Property, plant and equipment Goodwill Investment in associate 25,450 19,300 6,200 50,950 16.250 18,500 5,400 40,150 Current assets Cash and bank Trade and other receivables Inventories 2,100 3,900 4,700 10,700 1,400 3,300 4,350 9,050 Non-current liabilities Loans from banks Deferred tax 5,000 1,500 (6,500) 3,000 1,050 (4,050) Current liabilities Trade and other payables Tax payable Accrued interest 8,000 3,875 125 (12,000) 7,250 3,525 75 (10,850) 43,150 34,300 Equity Ordinary shares (RM1 each) Retained profits Other reserves (including revaluation reserve) Non-controlling interest 15,000 17,550 7,500 3,100 15,000 10,850 5,250 3,200 43,150 34,300 Additional information: (0) During the year, Mulus Berhad acquired 80% voting interest in Giling Berhad for a cash consideration of RM 15 million. On the date of acquisition, the non-controlling interest was measured at its fair value of RM3.4 million. The fair value of net assets of Giling Berhad at acquisition date comprised of the following: Property, plant and equipment Cash and bank Trade and other receivables Inventory Trade and other payables Loans from banks Tax payable RM'000 12,800 800 2,400 1,500 (1,800) (400) (400) 14,900 (ii) During the year, Mulus Berhad also disposed of its 60% voting interest in Bario Berhad and recorded a cash proceeds for RM8.5 million. This subsidiary had been acquired several years ago for RM6 million. At acquisition date, the fair value of Bario's net assets and non-controlling interest was RM7.3 million and RM3.2 million respectively. On the date of disposal, the net assets of Bario had a carrying value in the consolidated statement of financial position as follows: Property, plant and equipment Cash and bank Trade and other receivables Inventory Trade and other payables Loans from banks RM'000 7,250 500 1,500 1,650 (800) (300) 9,800 (iii) Property, plant and equipment: Depreciation charge for the year is RM3.85 million. A plant having carrying value of RM 2.5 million was sold for RM2.75 million. Gain on disposal has been credited to operating expenses. On the basis of the professional valuation report, Mulus Berhad recognised an increment of RM2 million in the value of property, plant and equipment. During the year, RM1.25 million was paid as final dividend to ordinary shareholders. Required: Prepare consolidated statement of cash flow of Mulus Berhad for the year ended 31 October 2016 using the indirect method. (25 marks)