The following are the financial statements of RSZ Bhd: Statement of Profit and Loss and Other Comprehensive Income for the year ended 31 December 2019 Sales revenue Material consumed Staff cost Depreciation Gain on sale of plant Impairment loss of intangibles Other operating expenses RM Million 710 (200) (148) (65) 8 (2) (63) 240 (14) 6 232 (64) 168 Interest expense Income from investment Profit before tax Tax Profit after tax Other comprehensive income Surplus on revaluation of land Total comprehensive income 14 182 2018 RM Million 400 8 408 310 576 984 Statement of Financial Position as at 31 December 2019 RM Million RM Million RM Million Non-Current Assets Property, plant & Equipment 542 Intangible assets 6 548 Current Assets Inventories 280 Trade receivables 262 220 Interest receivables 2 4 Investments 190 Cash 8 42 Total assets 742 1,290 Equity and Reserves Ordinary share capital 348 Revaluation reserve 14 Retained profits 293 655 Non-Current Liabilities Long term loans 40 Finance lease obligation 100 Deferred tax 24 819 Current Liabilities Trade payable 432 270 Tax payable 7 4 Interest payable 6 4 Finance lease obligation 10 6 Bank overdraft 16 40 471 1,290 290 186 476 80 84 20 660 324 984 Additional information: During the year, the company issued 10 million ordinary shares. Equipment acquired during the year under finance lease totalled RM52 million. Plant with carrying amount RM32 million was disposed of for RM40 million The investments do not qualify as cash equivalents. Required: 1. Prepare a Statement of Cash Flows for RSZ Bhd. for the year ended 31 December 2019 using the Direct Method, in compliance with MFRS 107. (18 marks) 2. Prepare a statement Reconciling Profit Before Tax to Cash Flows from Operations for RSZ Bhd. (10 marks)