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Question 4 Stanton closes its accounts on December 31 of each year. Given below are the Statement of Financial Position as at December 31, 2021
Question 4 Stanton closes its accounts on December 31 of each year. Given below are the Statement of Financial Position as at December 31, 2021 and December 31, 2020. Freehold land Plant and machinery (carrying amount) Research and development Inventories Trade receivables Cash at bank 2021, RM 80,000 110,000 8,000 2,000 30,000 Nil 2020, RM 65,000 110,000 10,000 5,000 20,000 5,000 Total Assets 230.000 215.000 Ordinary shares Revaluation reserve (land) Retained earnings 8% debentures Tax payable Trade payables Bank overdraft 140,000 5,000 66,000 8,000 1,000 6,000 4,000 130,000 Nil 63,000 10,000 1,500 8,000 2,500 Total Equity and Liabilities 230.000 215.000 Additional information: i. During the year 2021, 10,000 units of ordinary shares were bought back at RM13,000 and RM13,000 was transferred from retained earnings to contributed capital. ii. Depreciation on plant and machinery charged in the statement of profit or loss account was RM8,000 iii. There was no disposal of freehold land. Land was revalued and surplus on revaluation of RM5,000 has been credited in the revaluation reserve. iv. A plant which had an original cost of RM15,000 was sold for RM8,000. A new plant costing RM15,000 was acquired. No development expenditure was capitalized. vi. Tax expenses charged in the statement of profit or loss was RM2,800. vii. Interim ordinary dividends of RM2,000 were paid. viii. There was a right issue of ordinary shares for cash. ix. On January 1st, 2021, RM2,000 debentures were redeemed. Debenture interest for the year was paid. V. Required: From the information given, prepare the statement of cash flows for the year ended 31 December 2021
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