=) The following information is extracted from the financial statements of Dizzie Sdn Bhd at 31 December: 2020 2019 RM RM Assets Cash & bank 196,000 76,800 Accounts receivable (net) 181,600 66,000 Inventory 225,000 205,700 Prepaid expenses 36,800 32,000 Investments 216,000 188,000 Machinery 540,000 485,000 Accumulated depreciation-machinery (100,000) (104,000) 1,295,400 949,500 Equity and Liabilities Ordinary shares 440,000 370,000 Retained earnings 446,550 210,900 Debentures 170,000 200,000 Accounts payable 184,000 134,600 Accrued expenses 33,400 34,000 Dividends payable 21.450 Nil 1.295.400 949,500 Summarised financial data from the statement of profit or loss for the year ended 31 December 2020 is as follows: RM RM 684,000 Sales Less: Cost of goods sold Operating expenses Depreciation Loss on sale of machinery Interest expense Net profit before tax Income tax Net profit after tax 230,920 24,820 93,000 15,000 4,460 (368,200) 315,800 (14,000) 301,800 Additional information: New machinery was purchased for cash during the year. Old machinery with an original cost of RM115,000 was sold for RM3,000 cash Debentures matured and were redeemed at face value for cash. The company paid an interim dividend of RM33,150. A final dividend of 30 sen per share was declared. Required: Prepare a Statement of Cash Flows for the year ended 31 December 2020 using the indirect method. (20 marks) (b) The statement of cash flows is an important financial statement. (i) Identify the sources of information for preparing a statement of cash flows. (3 marks) Explain how the accrual basis of accounting affects the statement of cash flows. (7 marks) [Total: 30 marks]