Question

2.100 4,510 Question 1 (a) Based on the above information, prepare a statement of cash flow for 2010 (15 marks) Yasalam Corporation Balance Sheets at 31/12/2009 and 31/12/2010 Asus 2009 2010 RM RM Cash 3.110 Accounts Receivable 350 500 Inventory 650 900 Current assets 3.100 Plant and equipment 2.000 3.500 Less: accumulated depreciation (800) (1.800) Net plant and equipment 1,200 1700 Total assets 4,300 6.210 Liabilities and Owner's Equity: 2009 2010 RM Accounts payable 800 950 Notes payable 200 50 Current liabilities 1,000 Bonds 1100 Owners' equity Common stock 900 Retained earings 1300 Total owners' equity 2,200 3,560 Total liabilities and owners' equity 4,300 6.210 1.000 1650 900 2660 Yasalam Corp. Income Statement for the year ended 31/12/2009 and 31/12/2010 2009 Sales Cost of goods sold Gross profit Operating expenses Depreciation Net operating income Interest expense Net income before taxes Taxes (40%) Net income (RM) 4,000 1200 2.800 350 800 1650 100 1550 620 930 2010 (RM) 5,760 1500 4.260 100 1000 3160 3100 1240

Prepare a statement of cash flow

Answer 1

Statement of cash flows

Particulars	$	$
Cash flow from Operating Activities
Net income	1,860
Add: Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	1,000
Changes in current operating assets and liabilities:
Accounts receivable increase	- 150
Inventory increase	- 250
Accounts payable increase	150
Net cash provided by Operating Activities		2,610
Cash flow from Investing Activities
Purchase of plant and equipment	- 1,500
Net cash used by Investing Activities		- 1,500
Cash flow from Financing Activities
Issue of Bonds	550
Repayment of note payable	- 150
Dividend paid	- 500
Net cash used by Financing Activities		- 100
Net increase in Cash and Cash Equivalents(I +II +III)		1,010
Add: Cash in the beginning of the period		2,100
Cash at the end of the period		3,110

Cash dividend paid = Retained earnings, beginning + Net income – Retained earnings, ending

= 1,300 + 1,860 - 2,660

= 500

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