Question:

Note: Answer should be in typed words

Omega Bhd. (Omega) is a listed company in Sabah specialising in producing nutritious drinks. Given below are the financial statements of Omega: Statement of profit or loss for the year ended 31 August 2021 Revenue Cost of goods sold Gross profit Other operating income Administrative expenses Depreciation expenses Finance costs Profit before tax Tax expense Profit for the year RM'000 2,388 (622) 1,766 26 (1,112) (90) (195) 395 (85) 310 Statements of financial position as at 31 August 2021 RM'000 2020 RM'000 ASSETS Non-current assets Property, plant and equipment Intangible assets Investments 1,010 135 905 32 40 977 1,145 Current assets Inventories Trade receivables Short-term deposits Bank 250 228 180 57 715 277 211 130 618 Total assets 1,860 1,595 EQUITY AND LIABILITIES Equity Share capital Revaluation reserves Retained earnings 600 138 180 918 500 107 160 767 Non-current liability 6% Loan notes 302 419 288 Current liabilities Trade payables Tax liability Dividend payable Bank overdraft 71 281 204 99 74 32 409 640 Total equity and liabilities 1,860 1,595 Additional information: 1. Other operating income is made up of RM12,000 interest income and RM14,000 gain on disposal of an item of plant sold for RM20,000. 2. During the year ended 31 August 2021, the investments were sold for RM30,000. 3. The details of the property, plant and equipment are as follows: Cost Accumulated depreciation Carrying amount 31 August 2021 RM'000 1,394 (384) 1,010 31 August 2020 RM'000 1,208 (303) 905 Required: (a) Prepare the statement of cash flows of Omega Bhd. for the year ended 31 August 2021 (including the notes to the statement of cash flows in respect of the cash and cash equivalents) in accordance with IAS 7/ MFRS 107 Statement of Cash Flows, using the indirect method. (15 marks) (b) Based on the statement of cash flows prepared in part (a) above, comment on the cash flow position of Omega Bhd. (10 marks) [Total: 25 marks]