Question 6 Draft comparative balance sheets of Alpha Sdn Bhd as at 31 December 2019 and 2018 are as following:- 2019 2018 RM million RM million 108.5 393.0 50.4 219.0 Cash at bank Accounts receivable (less: provision for doubtlul debts) hwentories 84.0 585.5 1344 403 8 Plant and equipment (NBV) Investment in government securities 475.6 33.6 364.8 336 5092 398 4 Total assets 1,094.7 802.2 Ordinary shares 10% Preference shares of RM1.00 each Retained earnings 530.0 180.0 105.0 815.0 290.0 180.0 73.5 543.5 Accounts payable Tax payable Deferred taxation 10% Debentures 205.9 15.0 37.8 21.0 279.7 197.8 10.0 50.9 258.7 1,094.7 802.2 Draft income statement for the year ended 31 December 2019 RM million Sales 860.0 Less: Cost of sales (560.0) Gross profit 300.0 Operating expenses (224.4) Operating profit 75.5 Investment income 9.0 Prolit belore tax 84.6 Taxation (18.6) Prolit after tax 65.8 Interim dividend paid (34.3) Profit attributable to members 31.5 Additional information: Operating expenses include depreciation charge for the year of RM46.8 million and an increase in provision for doubtful debts of RM2.5 milion During the year an item of plant with a net book value of RM19.2 milion, was disposed off with a gain on disposal of RM14.4 millon The 10% Debentures were issued at par on 31 December 2019, Required:- (a) Prepare the cash flow statement for Alpha for the year ending 31 December 2019 using the direct method [25 marks] Question 6 Draft comparative balance sheets of Alpha Sdn Bhd as at 31 December 2019 and 2018 are as following:- 2019 2018 RM million RM million 108.5 393.0 50.4 219.0 Cash at bank Accounts receivable (less: provision for doubtlul debts) hwentories 84.0 585.5 1344 403 8 Plant and equipment (NBV) Investment in government securities 475.6 33.6 364.8 336 5092 398 4 Total assets 1,094.7 802.2 Ordinary shares 10% Preference shares of RM1.00 each Retained earnings 530.0 180.0 105.0 815.0 290.0 180.0 73.5 543.5 Accounts payable Tax payable Deferred taxation 10% Debentures 205.9 15.0 37.8 21.0 279.7 197.8 10.0 50.9 258.7 1,094.7 802.2 Draft income statement for the year ended 31 December 2019 RM million Sales 860.0 Less: Cost of sales (560.0) Gross profit 300.0 Operating expenses (224.4) Operating profit 75.5 Investment income 9.0 Prolit belore tax 84.6 Taxation (18.6) Prolit after tax 65.8 Interim dividend paid (34.3) Profit attributable to members 31.5 Additional information: Operating expenses include depreciation charge for the year of RM46.8 million and an increase in provision for doubtful debts of RM2.5 milion During the year an item of plant with a net book value of RM19.2 milion, was disposed off with a gain on disposal of RM14.4 millon The 10% Debentures were issued at par on 31 December 2019, Required:- (a) Prepare the cash flow statement for Alpha for the year ending 31 December 2019 using the direct method [25 marks]
