Question
The following are the financial statements of Darussunnah Bhd: Darussunnah Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31
The following are the financial statements of Darussunnah Bhd:
Darussunnah Bhd
Statement of Profit or Loss and Other Comprehensive Income for the year ended
31 December 2017
RM
Turnover 436,300,000
Cost of sales -275,500,000
Gross profit 160,800,000
Administrative expenses -106,680,000
Selling and distribution cost -35,000,000
Operating profit 19,120,000
Finance costs -2,000,000
Increase in fair value of investment property 710,000
Loss on foreign currency translation -140,000
Investment income 640,000
Gain on disposal of long-term investment 550,000
Profit before tax 18,880,000
Taxation -7,000,000
Profit for the year
Other comprehensive income:
11,880,000
Surplus on revaluation of land 3,000,000
Total comprehensive income 14,880,000
Darussunnah Bhd
Statement of Changes in Equity for the year ended 31 December 2017
Ordinary shares Retained
profit
Asset
Revaluation
Reserve
RM RM RM
Balance as at 1 January 2017 1,039,830,000 130,780,000 420,000
Revaluation surplus 3,000,000
Issue of shares 116,860,000
Profit for the year 11,880,000
Dividend -5,600,000
Balance as at 31 December 2017 1,156,690,000 137,060,000 3,420,000
Darussunnah Bhd
Statement of Financial Position as at 31 December
Non-current assets
2016
RM
2017
RM
Property, plant and equipment 60,000,000(2016) 55,260,000(2017)
Investment property
19,290,000(2016) 20,000,000(2017)
Intangibles assets
2,100,000(2016) 6,300,000(2017)
Long term investments
2,000,000(2016) 1,600,000(2017)
Current assets
Inventories
3,400,000(2016) 5,500,000(2017)
Accounts receivable
16,000,000(2016) 11,800,000(2017)
Short-term investments
3,000,000(2016) 9,500,000(2017)
Interest receivable
220,000(2016) 140,000(2017)
Tax recoverable
180,000(2016) -(2017)
Cash at bank
1,099,910,000(2016) 1,213,270,000(2017)
Total assets
1,206,100,000(2016) 1,323,370,000(2017)
Financed by:
Share capital
1,039,830,000(2016) 1,156,690,000(2017)
Reserves
131,200,000(2016) 140,480,000(2017)
Non-current liabilities
Foreign Loan
1,520,000(2016) 1,260,000(2017)
5% Debentures
8,650,000(2016) 5,440,000(2017)
Current liabilities
Accounts payable
16,000,000(2016) 14,000,000(2017)
Dividend payable
7,200,000(2016) 3,400,000(2017)
Bank overdraft
1,500,000(2016) 1,200,000(2017)
Taxation payable
-(2016) 600,000(2017)
Interest payable
200,000(2016) 300,000(2017)
Total equity and liabilities
1,206,100,000(2016) 1,323,370,000(2017)
Additional information:
1. Part of the administrative expenses consisting of the depreciation charge for property, plant
and equipment of RM6,000,000 and the amortisation charge for intangible assets ofRM800,000.
2. There was a revaluation surplus on the property, plant and equipment upon revaluation on31 December 2017. Part of the property, plant and equipment were disposed of at cost.
3. It is the policy of Darussunnah Bhd to measure its investment property based on fair valuemodel. No new investment property was acquired during the year.
4. The foreign loan is a long term loan from Dutch Bank obtained on 31 December 2016amounted to USD400,000. The spot rate at the date is RM 3.80: USD 1. The company has
repaid part of the loan amounted to USD100,000 on 30 June 2017 when the spot rate isRM4.00: USD1. The closing rate on 31 December 2017 is RM4.20: USD1.
5. Details of intangible assets movement during the year were as follows:
Balance as at 1 January 2017
2,100,000
Incurred and capitalised during the year 5,000,000
Amortisation expense
-800,000
Balance as at 31 December 2017 6,300,000
6. The carrying value of long-term investment disposed was RM400,000.
7. Short-term investment are to be considered as cash and cash equivalent.
8. Last year's dividend payable were paid together with the current year's interim dividend of
RM2,200,000.
Required:
a. Prepare Statement of Cash Flow for Darussunnah Bhd for the year ended 31 December
2017 by using the direct method.
b. Prepare statement reconciling the profit before tax to cash flow from operations.
(Show all relevant workings)
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