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) Part B 1. Selected comparative statement data for Yahtzee Company are presented below. All statement of financial position data are as of December 31: Net sales Cost of goods sold Interest expense Net income Accounts receivable Inventory Total assets Total ordinary shareholders' equity Required: Compute the following ratios for 2019: (a) Profit margin. (b) Asset turnover. (c) Return on assets. (d) Return on ordinary shareholders' equity. 2019 RM750,000 480,000 7,000 55,000 120,000 85,000 600,000 430,000 2018 RM720,000 440,000 5,000 42,000 100,000 75,000 500,000 320,000 (10 marks) 2. The comparative Statements of Profit or Loss for Spyfall Sdn Bhd are shown below. Spyfall Sdn Bhd Comparative Statements of Profit or Loss For the Years Ended 31 December 2019 (RM) Net Sales 620,000 Cost of Goods Sold 450,000 Gross Profit 170,000 Operating Expenses 54,000 Net Income 116,000 2018 (RM) 500,000 400,000 100,000 40,000 60,000 Required: Prepare a horizontal analysis of the Statements of Profit or Loss data for Spyfall Sdn Bhd using 2018 as a base. (Show the amounts of increase or decrease.) (5 marks) [TOTAL 25 MARKS]