The income statement and comparative balance sheet of James Corporation is given below:

James Corporation

Income Statement for the year ended December 31, 2018

	RM
Sales	5,000
Cost of goods sold	1,500
Gross profit	3,500
Selling & Administrative expenses	465
Operating profit	3,035
Gain on sale of investment	165
Profit before tax	3,200
Tax expenses	300
Profit after tax	2,900

James Corporation Statement of Balance Sheet

As at December 31, 2018 and 2017

	2018	2017
Assets:
Cash and cash equivalents	1050	400
Account receivable	875	650
Inventory	700	950
Plant assets	950	850
Accumulated depreciation	-600	-410
Long-term investments	650	1250
Total	3,625	3,690
Liabilities and capital:
Accounts payable	530	450
Accrued liabilities	220	130
Bond payable	700	1775
Capital stock	950	450
Retained Earnings	1,225	885
Total	3,625	3,690

During the year 2017, a dividend of RM2,560 was declared and paid by management of James Corporation. Some plant assets were purchased during 2018 and the payment was settled by issuing common stock amounting to RM60.

Required: Using the data given above, prepare statement of cash flows of James Corporation using indirect method. (20 Marks)

QUESTION 7

ABC Manufacturing is a company manufacturer Cupboard. Financial data for the year ended 31 December 2020, as followed:-

	1 Jan 2020	31 Dec 2020
Raw material	20,000	28,000
Work in progress	10,000	9,000
Finished Goods	5,000	8,500
Raw material purchase		80,000
Carriage inward on raw material purchase		1,200
Direct wages		20,000
Factory rent		6,000
Indirect labor		10,000
Factory Insurance		4,200
Machine Depreciation Expenses		6,000
Finished Good for Sales		150,000

Required

1. Prepare manufacturing statement for ABC Manufacturing for the year ended 31 December 2020.
2. State how much cost of Raw Material, Cost of Direct Labor and Cost Goods Manufacture Sold