QUESTION 3 The following balances are extracted from the Statement of Financial Position of Yellow Bhd as at 31 December: 2015 (RM'000) 4,000 2014 (RM'000) 4,200 Property, Plant & Equipment Investment 1,200 900 600 Inventory Trade Receivables Prepayments 800 400 100 350 Bank 104.8 160 Total 6,605 6,210 @RM1 each Ordinary Shares Retained Profits 5,120 784.8 5,000 720 8% Loan 200 140 Trade Payables 300 330 Tax Payables 100 20 Bank Overdraft 100 Total 6,605 6,210 The following additional information was also provided: 1. The details of the property, plant & equipment were as follow: RM '000 Balance 1/1/15 4,200 Depreciation (840) PPE sold (500) PPE purchased 1,140 Balance 31/1/15 4,000 The PPE was sold for cash of RM620,000. No investment was sold during the accounting year of 2015. 2. 3. 4. 5. Yellow Bhd issued ordinary shares. Additional 8% loan of RM100,000 was obtained from Bank MANA on 1 July 2015. The total interest expense duly paid for the year was RM15,200. 6. Dividend paid for the year was RM50,000. 7. Tax expense for 2015 was assessed at RM180,000. Required: a. Prepare the Statement of Cash Flows of Yellow Bhd as at 31 December 2015. (Show all workings) (15 marks) b. A company can choose to prepare its Statement of cash flows using either the direct or indirect method. Discuss briefly the difference between these two methods