Required

Prepare the Group Statement of Cash Flow for year ended 31 March 2020 using the indirect method.

Note: Show ALL relevant workings.

(16.5 marks)

You have just been transferred to the Treasury department of Trumpet Berhad as a replacement to the treasury executive who has suddenly resigned. The group treasurer has instructed you to manage the daily cash flow as well as prepare the Group Statement of Cash Flow. The group uses indirect method to prepare its Cash Flow. The following are the Statements of Financial Position and Statement of Comprehensive Income for year ended 31 March 2020 for Trumpet Berhad. Trumpet Berhad Group statement of financial position as at 31 March 2020 31 March 2019 RM'000 RM'000 Goodwill 1,260 1,780 Investment in Associates 211 297 Non-current assets: Land 24.550 23,000 20,048 19,683 Property, plant & machinery Current assets: Inventory 2,982 2,283 Trade receivables 3,266 2,106 Short term investment 2,000 2,500 Bank 524 742 Total assets 54,841 52,391 Ordinary shares 38,000 35,000 Revaluation reserve 4,500 4,100 Retained earnings 5,850 4,783 Non controlling interest 1,972 1,225 Debentures 300 1,500 Long term liabilities 800 1,000 2,373 4,133 Trade payable Tax payable 60 650 Overdraft 986 Nil Total cquity and liability 54,841 52.391 Trumpet Berhad Group statement of comprehensive income for year ended 31 March 2020 RM9000 Tumover 11,325 Cost of sales (5.683) Gross profit 5,642 (2.287) Operating expenses Miscellaneous expenses Share of profits in Associate (846) 86 Gain from sale of machine 30 Gain from disposal of subsidiary 150 Profit before tax 2,775 Taxation (655) Profit after tax 2.120 Other comprehensive income: 400 2.520 Revaluation surplus Total comprehensive income Profit after tax attributable to: Shareholders of Holding company Non-controlling interest Retained earning b/f 1,507 613 4,783 Additional information 1. 2. 3. 4. Depreciation charge for the year is RM3.99 million. A new piece of land was acquired during the year and fully paid in cash. There are no other acquisition or disposal of land. During the year, a machine with carrying value of RM150,000 was sold off for RM180,000 During the year, an associate was disposed at RM150,000 at cash at no gain no loss. During the year, property had a revaluation surplus of RM 400,000. The group paid off 80% of the matured debentures. On 30 September 2019, Trumpet disposed 80% owned subsidiary Piano Sdn Bhd for a profit of RM150,000 and received cash payment of RM2,397,200. Goodwill balance for this subsidiary is nil. 5. 6. 7. The balances of Piano on this date are as follows: RM'000 Property, plant and equipment 2,085 Inventory 655 Trade receivables 784 Bank 210 Trade payables (725) Debentures (200) 8. Subsequently on 31 December 2019, Trumpet purchased 75% of the ordinary shares of Guitar Sdn Bhd by issuance of its ordinary shares valued at RM3 million as at this date. The balances of this new subsidiary are as follows RM'000 Property, plant and equipment 2,965 Inventory 741 Trade receivables 789 Bank 246 Trade payables (801) Tax payables (84) You have just been transferred to the Treasury department of Trumpet Berhad as a replacement to the treasury executive who has suddenly resigned. The group treasurer has instructed you to manage the daily cash flow as well as prepare the Group Statement of Cash Flow. The group uses indirect method to prepare its Cash Flow. The following are the Statements of Financial Position and Statement of Comprehensive Income for year ended 31 March 2020 for Trumpet Berhad. Trumpet Berhad Group statement of financial position as at 31 March 2020 31 March 2019 RM'000 RM'000 Goodwill 1,260 1,780 Investment in Associates 211 297 Non-current assets: Land 24.550 23,000 20,048 19,683 Property, plant & machinery Current assets: Inventory 2,982 2,283 Trade receivables 3,266 2,106 Short term investment 2,000 2,500 Bank 524 742 Total assets 54,841 52,391 Ordinary shares 38,000 35,000 Revaluation reserve 4,500 4,100 Retained earnings 5,850 4,783 Non controlling interest 1,972 1,225 Debentures 300 1,500 Long term liabilities 800 1,000 2,373 4,133 Trade payable Tax payable 60 650 Overdraft 986 Nil Total cquity and liability 54,841 52.391 Trumpet Berhad Group statement of comprehensive income for year ended 31 March 2020 RM9000 Tumover 11,325 Cost of sales (5.683) Gross profit 5,642 (2.287) Operating expenses Miscellaneous expenses Share of profits in Associate (846) 86 Gain from sale of machine 30 Gain from disposal of subsidiary 150 Profit before tax 2,775 Taxation (655) Profit after tax 2.120 Other comprehensive income: 400 2.520 Revaluation surplus Total comprehensive income Profit after tax attributable to: Shareholders of Holding company Non-controlling interest Retained earning b/f 1,507 613 4,783 Additional information 1. 2. 3. 4. Depreciation charge for the year is RM3.99 million. A new piece of land was acquired during the year and fully paid in cash. There are no other acquisition or disposal of land. During the year, a machine with carrying value of RM150,000 was sold off for RM180,000 During the year, an associate was disposed at RM150,000 at cash at no gain no loss. During the year, property had a revaluation surplus of RM 400,000. The group paid off 80% of the matured debentures. On 30 September 2019, Trumpet disposed 80% owned subsidiary Piano Sdn Bhd for a profit of RM150,000 and received cash payment of RM2,397,200. Goodwill balance for this subsidiary is nil. 5. 6. 7. The balances of Piano on this date are as follows: RM'000 Property, plant and equipment 2,085 Inventory 655 Trade receivables 784 Bank 210 Trade payables (725) Debentures (200) 8. Subsequently on 31 December 2019, Trumpet purchased 75% of the ordinary shares of Guitar Sdn Bhd by issuance of its ordinary shares valued at RM3 million as at this date. The balances of this new subsidiary are as follows RM'000 Property, plant and equipment 2,965 Inventory 741 Trade receivables 789 Bank 246 Trade payables (801) Tax payables (84)