Question

The Statement of Profit or Loss and additional data of Supermommy Bhd. for the year ended 31 December 2017 is as follows: Statement of Profit or Loss for the Year Ended 31 December 2017 Sales Revenue Cost of Goods Sold Gross Profit Dividend Revenue Gain on Disposal of Non-current Assets Salaries Expense Depreciation Expense Bad Debt Expense Advertising Expense Interest Expense Income Tax Expense PROFIT FOR THE YEAR RM450,000 (150,000) 300,000 10,500 6,000 (80,000) (30,000) (3,000) (13,000) (1,500) (19,500) 169,500 Other relevant data gathered by the accountant is as follows: 1. Purchased of furniture and equipment during the year totalled RM183,000. Of this amount, RM154.500 was paid in cash and RM28.500 note payable was signed for the remainder. 2. Proceeds from issuance of ordinary share capital totalled RM51.000. 3. piece of land that cost RM36,000 was sold for cash RM42.000. A gain of RM6,000 was recognized on the sale. 4. Payment of long term note payable was RM25.500. 5. Payment of dividends was RM16.500. 6. Data from the comparative Statement of Financial Position follow: 313 December Cash Accounts Receivable Inventory Accounts Payable Other Payables 2017 RM133,500 51,000 67.500 16,500 49.500 2016 RM36,000 42,000 93,000 39,000 39,000 Required: (a) Prepare the statement of cash flows for the year ended 31 December 2017, using the indirect method.

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

169500 Answer 2 Part 1) Supermommy Bhd. Statement of Cash Flows For the Year Ended 31 December 2017 6 Cashflow from Operating activities 7 Net Income Adjustment to reconcile net income to net 8 cash flow from operating activities 9 Depreciation expense 30000 10 Gain on disposal of non current assets 11 Bad Debt expense 3000 12 Increase in account receivable (51000-42000) -9000 13 Decrease in inventory (93000-67500) 25500 14 Decrease in account payable (39000-16500) -22500 15 Increase in other payable (49500-39000) 10500 16 17 Cash Inflow from operating activities -6000 31500 201000 19 Cashflow from Investing activities 20 Cash Paid for Purchase of equipment 21 Cash received from sale of land 22 Cash Outflow from Investing activities - 154500 42000 -112500 23

25 51000 -25500 -16500 24 Cashflow from financing activities 25 Cash Received from issue of common stock 26 Cash Paid for Note Payable 27 Cash Paid for Dividend 28 Cash Inflow from financing activities 29 Net Cash Inflow from all activities 30 Beginning Cash Balance 31 Closing Cash Balance 9000 97500 36000 133500