Question 4 (25 marks) WE ARE SAFE BERHAD Statement of Comprehensive Income For the year ended 31 December 2020 Revenue 975.000 Cost of sales (660,000) Gross profit 315.000 Operating expenses (*) (195.000) Net profit before tax 120,000 Tax expense (36,000) Net profit after tax 84.000 i. Additional information: Operating expense above is inclusive of depreciation expense RM18,000 and loss on disposal of equipment RM1.000. ii. Company declared and paid dividend of RM32,000. An equipment with cost: RM20,000 and net book value of RM18,000 was sold. During the year, company also acquired an equipment costing RM 180.000 for cash. Debenture was issued during the year. It was decided there will not be any interest on debenture cost incurred in the year of issuance. Company also issued ordinary share of RM100,000 which was fully paid on June 2020. Entire proceeds from this issuance were then used to acquire a land on 1 August 2020 iv. V. WE ARE SAFE BERHAD Comparative Statement financial position as at 31 December 2020 2019 Assets Cash in hand 11,000 9,000 Cash at bank 180,000 150.000 Trade receivables 12.000 15.000 Inventory 130,000 160,000 Prepayments 6,000 8.000 Land 180,000 80.000 Equipment 160.000 Accumulated depreciation - Equipment (16,000) 663.000 422.000 In accordance with MFRS107(IAS 7) Statement of cashflow, required: . Prepare Statement of cashflow for the year ended 31 December 2020 using the indirect method (21 marks) b. Briefly explain the difference between cash & cash equivalent as quoted in MFRS107 (para 7-9) with relevant illustration (4 marks) Equities & Liabilities Ordinary share capital Retained earnings Trade payables Accruals Tax payable 5%, Debenture 400.000 94,000 52,000 15.000 12,000 90.000 663.000 300,000 42,000 60.000 20,000 422.000