The consolidated accounts of Hexagon Bhd for the year ended 31 December 2019 were as follows. Group Statement of Financial Position for the years ended 31 December 2019 2019 2018 RM'000 RM'000 Fixed Assets 3,300 2,580 Investment in Associate company 980 Other Investments 130 130 Goodwill 500 Current Assets Inventories Trade receivables Deferred tax asset Cash at bank and in hand 880 570 980 370 7,210 500 630 555 570 5,465 Equity & Long Term Liabilities Ordinary shares of RM1 each Revaluation Reserve Long term loans Accumulated profits 1,500 500 940 1,215 500 940 1,060 3,715 150 1,390 4,330 Non-Controlling Interest Current Liabilities Bank overdraft Proposed Dividend Income Tax payable Trade Payables 1,560 500 270 550 7,210 350 450 100 700 5,465 Consolidated Statement of Comprehensive Income for the year ended 31 December 2019 RM000 Revenue 4,500 Cost of Sales (1,800) 2,700 Advetising & sales expenses (660) Adminstration expenses (1,300) Finance costs (200) Operating profit 540 Share of profits of associated companies 400 Profit before tax 940 Tax (300) Profit after tax 640 Profit after tax attributable to: Equity hollers of parent 480 Non-Controlling Interest 160 640 Additional Information: i) Dividend proposed and paid by Hexagon Bhd during the year was RM150,000 ii) Included in the expenses are the following: RM'000 Depreciation of non-current assets 350 Gain on disposal of subsidiary 440 Gain on disposal of fixed assets 200 iii) During the year machinery with of net book value of RM400,000 was sold for RM 600,000 iv) On 1 December 2019, Hexagon Bhd sold its 85% holding of the ordinary shares of its subsidiary Square Bhd for a consideration of RM1.8million. The sale price was settled in cash. On that date, the net assets of Square Bhd were as follows: RM000 Cash & Bank 300 Fixed Assets 900 Inventory 350 Trade Receivable 200 Trade Payable (150) NCI (240) 1.360 v) During the year, Hexagon Bhd acquired a 30% interest in the ordinary shares of Angle Bhd by payment of cash of RM900,000. Required: a) Prepare the consolidated cash flow statement for the year ended 31 December 2019 using the direct method. (13 marks) b) Show the reconciliation of profit before tax to cash flow from operations. (7 marks) The consolidated accounts of Hexagon Bhd for the year ended 31 December 2019 were as follows. Group Statement of Financial Position for the years ended 31 December 2019 2019 2018 RM'000 RM'000 Fixed Assets 3,300 2,580 Investment in Associate company 980 Other Investments 130 130 Goodwill 500 Current Assets Inventories Trade receivables Deferred tax asset Cash at bank and in hand 880 570 980 370 7,210 500 630 555 570 5,465 Equity & Long Term Liabilities Ordinary shares of RM1 each Revaluation Reserve Long term loans Accumulated profits 1,500 500 940 1,215 500 940 1,060 3,715 150 1,390 4,330 Non-Controlling Interest Current Liabilities Bank overdraft Proposed Dividend Income Tax payable Trade Payables 1,560 500 270 550 7,210 350 450 100 700 5,465 Consolidated Statement of Comprehensive Income for the year ended 31 December 2019 RM000 Revenue 4,500 Cost of Sales (1,800) 2,700 Advetising & sales expenses (660) Adminstration expenses (1,300) Finance costs (200) Operating profit 540 Share of profits of associated companies 400 Profit before tax 940 Tax (300) Profit after tax 640 Profit after tax attributable to: Equity hollers of parent 480 Non-Controlling Interest 160 640 Additional Information: i) Dividend proposed and paid by Hexagon Bhd during the year was RM150,000 ii) Included in the expenses are the following: RM'000 Depreciation of non-current assets 350 Gain on disposal of subsidiary 440 Gain on disposal of fixed assets 200 iii) During the year machinery with of net book value of RM400,000 was sold for RM 600,000 iv) On 1 December 2019, Hexagon Bhd sold its 85% holding of the ordinary shares of its subsidiary Square Bhd for a consideration of RM1.8million. The sale price was settled in cash. On that date, the net assets of Square Bhd were as follows: RM000 Cash & Bank 300 Fixed Assets 900 Inventory 350 Trade Receivable 200 Trade Payable (150) NCI (240) 1.360 v) During the year, Hexagon Bhd acquired a 30% interest in the ordinary shares of Angle Bhd by payment of cash of RM900,000. Required: a) Prepare the consolidated cash flow statement for the year ended 31 December 2019 using the direct method. (13 marks) b) Show the reconciliation of profit before tax to cash flow from operations. (7 marks)