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QUESTION 4 Part A Scrabble Berhad reported net income of RM350,000 for year 2019. The company also reported depreciation expense of RM43,000: gain of RM5,000

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QUESTION 4 Part A Scrabble Berhad reported net income of RM350,000 for year 2019. The company also reported depreciation expense of RM43,000: gain of RM5,000 on the disposal of land and an amortization of patent amounted RM4,000. The comparative statement of financial position shows an increase in accounts receivable of RM50,000; RM13,000 decrease in inventory: RM7,000 decrease in interest receivable; RM6,000 increase in prepaid expense; RM5,600 increase in accounts payable; and RM1,500 decrease in income taxes payable. Required: (a) Prepare the operating activities section of the statement of cash flows of Scrabble Berhad for the year ended 31 December 2019, using the indirect method. (6 marks) (b) Illustrate the steps in preparing statement of cash flows using the indirect method. (4 marks)

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