The following are the financial statements of AFFA Bhd: AFFA Bhd Statement of Profit or Loss...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following are the financial statements of AFFA Bhd: AFFA Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 RM'000 Revenues 29,300 Cost of sales (11.520) 17,780 Gross profit Rental income 66 Administrative costs (1,494) Selling and distribution cost Operating profit (352) 16,000 Finance costs (180) (220) Loss on disposal of long-term investment Gain on fair value of investment property 150 Investment income 228 Gain on disposal of property, plant and equipment 272 Profit before tax 16,250 Тахation (3,930) Profit for the year 12,320 Other comprehensive income: Revaluation surplus 200 Total comprehensive income 12,520 Ordinary Shares Asset Revaluation Retained Profit Reserve RM'000 RM'000 RM'000 Balance as at 1 January 2020 Revaluation surplus Issue shares 5,000 200 22,920 11,160 2,880 Bonus shares 3,760 (3,760) 12,320 (7.640) 12,080 Profit for the year Dividend paid Balance as at 31 December 2020 29,560 5,200 AFFA Bhd Statement of Financial Position as at 31 December 2019 2020 RM'000 RM'000 Non-current assets Property, plant and equipment 30,000 34,000 Investment property 6,400 6,550 3,320 39,720 Long-term investments 2,860 43,410 Current assets Inventories 1,030 1,120 Accounts receivable 1,510 1,830 Short-term investments 612 1,779 Interest receivable 136 119 Tax recoverable 58 Cash 604 2,930 3,950 7,778 TOTAL ASSETS 43,670 51,188 Financed by: Share capital 22,920 29,560 Reserves 16,160 17,280 39,080 46,840 Non-current liabilities Long term loan 2,470 2,040 Current liabilities Accounts payable 1,830 2,228 Bank overdraft 220 Taxation payable 32 Accrued interest 40 15 Accrued distribution expenses 30 33 4,590 4,348 TOTAL EQUITY AND LIABILITIES 43,670 51,188 Additional information: The current year's depreciation for property, plant and equipment of RM680,000 was charged in the administrative costs. 1. 2. A machinery with a carrying amount of RM470,000 was realised for cash during the year. There was an acquisition of new property, plant and equipment during the year. It is the policy of AFFA Bhd to measure its investment property based on fair value model. No new investment property was acquired during the year. 3. 4. Long-term investment at the carrying value of RM700,000 was disposed during the current year. 5. The increase in ordinary shares were due to additional shares issued at fair value for cash and also an issue of bonus share. 6. Short-term investments are to be considered as cash and cash equivalent. Required: а. Prepare a Statement of Cash Flow for AFFA Bhd for the year ended 31 December 2020 by using the direct method. b. Prepare a statement reconciling the profit before tax to cash flow from operations. (Show all relevant workings) (Total: 30 marks) The following are the financial statements of AFFA Bhd: AFFA Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 RM'000 Revenues 29,300 Cost of sales (11.520) 17,780 Gross profit Rental income 66 Administrative costs (1,494) Selling and distribution cost Operating profit (352) 16,000 Finance costs (180) (220) Loss on disposal of long-term investment Gain on fair value of investment property 150 Investment income 228 Gain on disposal of property, plant and equipment 272 Profit before tax 16,250 Тахation (3,930) Profit for the year 12,320 Other comprehensive income: Revaluation surplus 200 Total comprehensive income 12,520 Ordinary Shares Asset Revaluation Retained Profit Reserve RM'000 RM'000 RM'000 Balance as at 1 January 2020 Revaluation surplus Issue shares 5,000 200 22,920 11,160 2,880 Bonus shares 3,760 (3,760) 12,320 (7.640) 12,080 Profit for the year Dividend paid Balance as at 31 December 2020 29,560 5,200 AFFA Bhd Statement of Financial Position as at 31 December 2019 2020 RM'000 RM'000 Non-current assets Property, plant and equipment 30,000 34,000 Investment property 6,400 6,550 3,320 39,720 Long-term investments 2,860 43,410 Current assets Inventories 1,030 1,120 Accounts receivable 1,510 1,830 Short-term investments 612 1,779 Interest receivable 136 119 Tax recoverable 58 Cash 604 2,930 3,950 7,778 TOTAL ASSETS 43,670 51,188 Financed by: Share capital 22,920 29,560 Reserves 16,160 17,280 39,080 46,840 Non-current liabilities Long term loan 2,470 2,040 Current liabilities Accounts payable 1,830 2,228 Bank overdraft 220 Taxation payable 32 Accrued interest 40 15 Accrued distribution expenses 30 33 4,590 4,348 TOTAL EQUITY AND LIABILITIES 43,670 51,188 Additional information: The current year's depreciation for property, plant and equipment of RM680,000 was charged in the administrative costs. 1. 2. A machinery with a carrying amount of RM470,000 was realised for cash during the year. There was an acquisition of new property, plant and equipment during the year. It is the policy of AFFA Bhd to measure its investment property based on fair value model. No new investment property was acquired during the year. 3. 4. Long-term investment at the carrying value of RM700,000 was disposed during the current year. 5. The increase in ordinary shares were due to additional shares issued at fair value for cash and also an issue of bonus share. 6. Short-term investments are to be considered as cash and cash equivalent. Required: а. Prepare a Statement of Cash Flow for AFFA Bhd for the year ended 31 December 2020 by using the direct method. b. Prepare a statement reconciling the profit before tax to cash flow from operations. (Show all relevant workings) (Total: 30 marks)
Expert Answer:
Answer rating: 100% (QA)
Cash receipts from customers amount sales 29300000 add accounts receivable at the beginning of the year 1510000 less accounts receivable at the end of ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
Statement of profit or loss and other comprehensive income Year ended 31 Nine-month Dec-18 period ended 31 Dec-17 Revenue 2,200,228 1,561,138 Cost of sales -1,199,154 -877,354 Gross profit 1,001,074...
-
Statement of Comprehensive Income for the year ended 31 December 2010 Debit RM Credit RM Freehold land at cost 4,600,000 Building at cost 9,000,000 Plant and equipment at cost 5,800,000 Motor...
-
The following are comparative financial statements of the Perez Company for 2006, 2007, and 2008: Required On the basis of the given information: 1. Prepare horizontal analyses for Perez Company...
-
Question #1 The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-8,400 1 $5,900 2 $6,200 Do not enter dollar signs or commas in the input boxes. Use the...
-
Postretirement benefits other than pensions (OPRBs) are similar to defined benefit pension plans in some respects and different in others. Required: a. Discuss the characteristics of OPRBs that make...
-
Consider a 238U nucleus to be made up of an alpha particle (4He) and a residual nucleus (234Th). Plot the electrostatic potential energy U(r), where r is the distance between these particles. Cover...
-
Assume you own a new, family-style restaurant that will open for business in the coming year. Formulate a long term goal for the restaurant, and then develop short-term goals to help you achieve the...
-
The Mistine case provides an example of an international company competing against a well know brand: Avon. It follows the company from small start-up to one of the largest Asian direct sellers. It...
-
I have a project management question. Can someone give me and example Work Breakdown Structure (WBS) for an event type project such as a concert. I would like the WBS to be at least 3 level work...
-
5-1. A manufacturer of mountain bike will design and implement an automated system for welding bicycle frames. All works related to this project will be conducted within the company without any...
-
Digital reading from the 10-bit ADC of your Atmega328p MCU is Digital reading = (Your Roll No x 3) + 125 If the reference voltage of the ADC (Vref) is given by the following formula Vref = ((Your...
-
Which perpetuity has a higher rate of return? explain why. Perpetuity A: $10,000 perpetuity that pays $500 per year Perpetuity B: $40,000 perpetuity that pays $1,500 per year
-
ABC, Inc. is issuing bonds at $ 8 4 0 . The bonds have 2 0 years to maturity with a coupon rate of 6 . 5 % compounded semiannually. ABC s marginal tax rate is 3 0 % . What is the after - tax cost of...
-
You will sketch a version of your app and indicate what all the different outputs are. A classmates should be able to tell how the app works based on the sketch and labels.
-
Q1. On July 1st, 2021, Verrecchia Manufacturing exchanged machinery A to machinery B with Demski Corp. Verrecchia Manfacturing paid $100,000 additionally to Demski Corp. for this transaction....
-
If you think a franchise operator needs a costing system, what are the reasons for your selected costing system
-
HealthTech Innovations has reported a net income of $4.5 million for the fiscal year ending December 31, 2023. The company had total assets of $27 million and total liabilities of $13 million at the...
-
According to a recent survey, 40% of millennials (those born in the 1980s or 1990s) view themselves more as spenders than savers. The survey also reveals that 75% of millennials view social...
-
On January 1, 2007 Doe Company purchased 3,000 of the 10,000 common shares outstanding of the Ray Company for $15 per share and obtained significant influence. Doe amortizes its patents over 10...
-
Using appropriate tables, solve the following future value of annuity problems: Required 1. What is the future value on December 31, 2013 of seven cash flows of $10,000, with the first cash payment...
-
The Howard Corporation presented the following trial balance for the quarter ended March 31, 2007: Additional information: 1. The company uses control accounts for selling expenses and for general...
-
Paddle Petroleum has the following account balances at 12/31/15: The above properties are abandoned in 2016. Record the abandonment entry. Lease A: unproved property Lease B: proved property... Wells...
-
Aaron Energy Corporation has the following account balances at 12/31/15: At 12/31/15, Lease A is considered to be 40% impaired. Aaron Energys estimated abandonment rate of insignificant unproved...
-
Dwight Oil and Gas Company has the following information at 12/31/15. Production in 2015: Capitalized costs, plus future development costs..... Accumulated DD&A.. Proved reserves Oil. Gas. $2,000,000...
Study smarter with the SolutionInn App