QUESTION 4 (30 MARKS) Mind Solutions Berhad is a publicly listed company. The following is the Statement of Profit and Loss and the Statements of Financial Position for the company for the year 2016: Mind Solutions Berhad Statement of Profit or Loss for the year ended 31 December 2016 RM 400,000 280,000 RM Revenue Cost of sales Gross profit Income from operations Interest expense Income before income taxes Income tax expense Net profit 120,000 46,000 74,000 4,000 70,000 21,000 49,000 Mind Solutions Berhad Statement of Financial Position as at 31 December 2015 & 2016 2016 2015 Assets Cash Account receivables Inventory Property, plant & equipment Less: accumulated depreciation Total assets 38,000 26,000 30,000 50,000 20,000) 124,000 23,000 34,000 15,000 78,000 24,000) 126,000 Liabilities and Equity Accounts payable Income taxes payable Bonds payable Share capital Retained earnings Total Liabilities & Equity 17,000 13,000 7,000 41,000 46,000 124,000 23,000 8,000 33,000 24,000 38,000 126,000 Additional information: i. Dividends declared and paid were RM41,000 ii. During the year, equipment was sold for RM15,000 cash. This equipment cost RM28,000 and had a book value RM15,000 at the time of sale. iii. All depreciation expense is in the operating expense. Additional information: i. Dividends declared and paid were RM41,000 ii. During the year, equipment was sold for RM15,000 cash. This equipment cost RM28,000 and had a book value RM15,000 at the time of sale. ii. All depreciation expense is in the operating expense ACCT2122/Sept/Oct2017 Page 6 of 7 iv. All sales and purchase are on account. v. Accounts payable pertain to merchandise suppliers. vi. All operating expenses except depreciation were paid in cash Required: Prepare the Statement of Cash Flows for Mind Solutions Berhad for the year ended 31 December 2016 in accordance with MFRS 107 Statement of Cash Flows (using direct method). (30 marks)