Question 3 MONEWOER We HOVLIGT (a) The following information was extracted from Greenpower MS Bhd. for the year ended 28 February 2011. RM 105,000 50,000 252,300 4,600 25,000 331,900 Cash at the 1 March 2010 Cash receipts: Cash received from issuance of stock Cash received from customers Cash received from interest at bank Cash received from borrowing at bank Total cash receipts Cash payments: Cash paid for wages of employees Cash paid to stockholders as dividends Cash paid to bank for interest Cash paid to bank to repay earlier loan Cash paid for taxes Cash paid for operating expenses Cash paid for equipment Total cash payments 134,600 5,500 7,200 10,000 23,500 128,100 15,000 323,900 Required: Determine net cash flows from operating activities using direct method. (4 marks) 101 (b) State and explain whether the item below need to be added or deducted from the net income to obtain the net cash flows from investing and financing activities using indirect method: (0) Sale of equipment (ii) Purchase of equipment (iii) issue of ordinary shares (iv) Payment of dividend [6 marks) (c) Explain TWO (2) purposes of statement of cash flows and list TWO (2) uses of the cash flow statement in order to assist investors, creditors, and other users. [4 marks) (d) Explain briefly THREE (3) differences between net income and net cash flows. [6 marks)