Question 3 The following information shows the activities of North Borneo Resources Bhd. Statement of financial position as at 31 Dec 2019 31 Dec 2018 RM RM RM RM Non-current assets 3,410,000 3,235,000 Property, plant & equipment at cost Less: Accumulated depreciation 892,000 787,000 2,518,000 2,448,000 Current assets Inventories 471,000 376,000 Short term investment 450,000 450,000 704,000 600,000 Receivables & prepayments Bank 539,000 2,164,000 474,000 1,900,000 TOTAL ASSETS 4,682,000 4,348,000 Equity Share capital 2,000,000 2,000,000 Retained earnings 1,036,000 993,000 Total Equity 3,036,000 2,993,000 Non-current liabilities Debenture 1,125,000 725,000 Current liabilities Payables 465,000 574,000 Income tax 44,000 44,000 521,000 630,000 Total liabilities 1,646,000 1,355,000 TOTAL EQUITY AND 4,682,000 4,348,000 LIABILITIES Income statement for the year ended 31 December 2018 RM '000 Revenue 5,213,000 Cost of sales (3,307,000) Gross profit 1,906,000 Operating expenses (924,000) Depreciation expenses (465,000) 517,000 Profit before interest Interest expenses paid Loss on disposal (75,000) (40,000) Profit before taxation Taxation Profit for the year 402,000 (59,000) 343,000 Additional information i. Equipment costing RM800,000 was sold for RM400,000 cash. The book value of equipment is RM440,000. Required: Prepare the cash flow statement for the year ended 31 December 2019 using the indirect method. (Total: 30 Marks)