Question

Mawar Sdn. Bhd. presented the following balances in the company's statement of financial position for 2017 and 2016. December 31, 2017 December 31, 2016 RM RM Equipment 105,450 76,500 Accumulated depreciation-equipment (48.300) (30,600) Inventory 175.350 139,875 Accounts receivable 19,425 23.250 Cash 53.925 31,800 Ordinary share capital, no par value 207,000 165,000 Retained earnings 55,875 33,450 Accounts payable 38,475 35,625 Tax payable 4,500 6,750 Mawar Sdn. Bhd, presented the following statement of profit or loss for the year ended December 31, 2017 RM Sales revenue 358,535 Cost of goods sold (107,560) Gross profit 250,975 Operating expenses (including depreciation, RM17,700) (117,700) Profit before tax 133,275 Tax expense (44,850) Profit for the year 88,425

Answer 1

Mawar Sdn. Bhd.
Statement of Cash Flows
Year Ended December 31, 2017
Cash flow from operating activities
Net Income		88,425
Adjust to reconcile net income to net cash provided by operation
Depreciation expense	17,700
Accounts receivable decrease	3,825
Inventory increase	-35,475
Accounts payable increase	2,850
		-11,100
Cash flow from operating activities		77,325
Less: Tax Paid		-2,250
Net Cash provided by operating activities		75,075
Cash flow from investing activities
Cash paid for the purchase of equipment	-28,950
Net cash used in investing activities		-28,950
Cash flow from financing activities
Cash received from issuing share	42,000
Cash paid for dividends	-66,000
Net cash used in financing activities		-24,000
Net increase (decrease) in cash		22,125
Cash balance at beginning of the year		31,800
Cash balance at end of year		53,925