QUESTION 6

Comprehensive Income Statement of Syarikat Warisan Sdn. Bhd. for the year ending 31 December 2019 is as follows:

	RM	RM
Sales Proceeds		390,000
Cost of Goods Sold	264,000
Operation Expenses (excluding depreciation)	70,400
Depreciation Expenses	7,200
Loss on sale of equipment	400	342,000
Profit before tax		48,000
Tax		14,400
Net Profit		33,600

Statement of Financial Position of Syarikat Warisan Sdn. Bhd. On 31 December 2018 and 2019 were as follows:

	2019	2018	Increase (Decrease)
	RM	RM	RM
ASSETS
Cash	76,400	63,600	12,800
Account Receivable	4,800	6,000	(1,200)
Inventory	52,000	64,000	(12,000)
Prepaid Expenses	2,400	3,200	(800)
Land	72,000	32,000	40,000
Equipment	64,000	0	64,000
Accumulated Depreciation - Equipment	(6,400)	0	6,400
TOTAL	265,200	168,800
OWNER'S EQUITY & LIABILITIES
Accounts Payable	20,800	24,000	(3,200)
Accrued Expenses	6,000	8,000	(2,000)
Tax Payable	36,000	0	36,000
Bond Payable	4,800	0	4,800
Ordinary Shares	160,000	120,000	40,000
Retained Earnings	37,600	16,800	20,800
TOTAL	265,200	168,800

Additional Info:

1. In 2019, the company has declared and paid a dividend amounting to RM12,800.

2. Bonds with an initial value of RM36,000 were issued for cash.

3. Equipment, costing RM72,000 was purchased in cash.

4. Equipment, cost RM8,000 sold at RM6,800 cash. The book value of the equipment at the time of sale is RM7,200.

5. Ordinary shares, RM40,000 were issued to acquire the land.

Required:

1. Statement of Cash Flows of Syarikat Warisan Sdn. Bhd. For the Year Ending December 31, 2019 (Indirect Method).