Question 4 Kasih Sayang Sdn Bhd Statement of profit or loss for the year ending 31 December 2018 RM RM 155,030 200 135,230 200 Gross profit Add Reduction in allowance for doubtful debt Less expenses Wages & salaries General trading expenses Equipment running cost Motor vehicle expenses Depreciation: Motor vehicles Depreciation: Equipment Loss on sale of equipment 61,400 15,200 8,140 6,390 5,200 6,300 1,600 104,230 51,000 Statement of Financial Position as at 31 December 2018 2017 RM 2018 RM RM RM Non-current Assets Equipment at cost Less Depreciation to date 40,400 -24,600 15,800 30,800 -20,600 10,200 Motor vehicles at cost Less Depreciation to date 28,300 -9,200 19,100 28,300 -14,400 13,900 34,900 24,100 Current Assets Inventory Accounts receivable less allowance Bank Total assets 41,700 21,200 12,600 44,600 19,800 28,100 75,500 110,400 92,500 116,600 14,300 17,500 Current liabilities Accounts payable Non-current liabilities Loan from Encik Yussof Capital Opening balance b/d Add Net profit Less Drawings 20,000 34,300 10,000 27,500 65,600 42,500 -32.000 76,100 51,000 -38.000 76,100 89.100 Total equity and liabilities 110,400 116,600 Additional information: Accounts receivable 2017 RM22,100 less allowance RM900 Accounts receivable 2018 RM20,500 less allowance RM700 Equipment was sold for RM15,800 during 2018. Equipment costing RM18,100 was purchased during the year. Required: (a) Construct a statement of cash flows for Kasih Sayang Sdn Bhd for the year ending 31 December 2018, using indirect methods and according to the IAS 7 layout (b) Critically evaluate the benefit of IAS 7/FRS 102 Cash Flow Statement from the perspective of relevant stakeholders