You have been given the following information relating to a limited liability company called Nobrie. This...

 

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You have been given the following information relating to a limited liability company called Nobrie. This company is preparing its financial statements for the year ended 31 May 2020. Nobrie Income statement for the year ended 31 May 2020 Revenue Cost of sales Gross profit Distribution costs Administrative expenses Profit from operations Investment income Finance cost Profit before tax Tax Net profit for the period Accumulated profits brought forward at 1 June 2019 Accumulated profits carried forward at 31 May 2020 Nobrie Statement of financial position as at 31 May RM'000 Assets Non-current assets Cost Accumulated depreciation Current Assets Inventory Trade receivables Cash Total assets Equity and liabilities Capital and reserves Ordinary share capital Share premium Revaluation reserve Accumulated profits Non-current liabilities 6% loan note Current Liabilities Bank overdraft Trade payables Taxation Total equity and liabilities 24,931 18,922 3,689 5,533 16,699 7,989 RM'000 66,600 (13,785) 52,815 (7,530) (2,516) 42,769 146 (1,177) 41,738 (9,857) 31,881 28,063 59,944 2020 RM'000 144,844 (27,433) 117,411 47,542 164,953 27,000 14,569 15,395 59.944 116,908 17,824 30,221 164,953 RM'000 24,065 13,238 2,224 6,973 20,324 7,323 2019 RM'000 114,785 (26,319) 88,466 39,527 127,993 23,331 10,788 7,123 28.063 69,305 24,068 34,620 127,993 Additional information (i) During the year ended 31 May 2020, the company sold a piece of equipment for RM3,053,000, realising a profit of RM1,540,000. There were no other disposals of non-current assets during the year. (ii) Profit from operations is stated after charging depreciation of RM5,862,000. (iii) There were no amounts outstanding in respect of interest payable or receivable as at 31 May 2019 or 2020. (iv) There were no dividends paid or declared during the year. Required: (a) Prepare a cash flow statement for Nobrie for the year ended 31 May 2020 in accordance with IAS 7 Cash Flow Statements. (35 marks) (b) Comment on the cash flow statement. (10 marks) You have been given the following information relating to a limited liability company called Nobrie. This company is preparing its financial statements for the year ended 31 May 2020. Nobrie Income statement for the year ended 31 May 2020 Revenue Cost of sales Gross profit Distribution costs Administrative expenses Profit from operations Investment income Finance cost Profit before tax Tax Net profit for the period Accumulated profits brought forward at 1 June 2019 Accumulated profits carried forward at 31 May 2020 Nobrie Statement of financial position as at 31 May RM'000 Assets Non-current assets Cost Accumulated depreciation Current Assets Inventory Trade receivables Cash Total assets Equity and liabilities Capital and reserves Ordinary share capital Share premium Revaluation reserve Accumulated profits Non-current liabilities 6% loan note Current Liabilities Bank overdraft Trade payables Taxation Total equity and liabilities 24,931 18,922 3,689 5,533 16,699 7,989 RM'000 66,600 (13,785) 52,815 (7,530) (2,516) 42,769 146 (1,177) 41,738 (9,857) 31,881 28,063 59,944 2020 RM'000 144,844 (27,433) 117,411 47,542 164,953 27,000 14,569 15,395 59.944 116,908 17,824 30,221 164,953 RM'000 24,065 13,238 2,224 6,973 20,324 7,323 2019 RM'000 114,785 (26,319) 88,466 39,527 127,993 23,331 10,788 7,123 28.063 69,305 24,068 34,620 127,993 Additional information (i) During the year ended 31 May 2020, the company sold a piece of equipment for RM3,053,000, realising a profit of RM1,540,000. There were no other disposals of non-current assets during the year. (ii) Profit from operations is stated after charging depreciation of RM5,862,000. (iii) There were no amounts outstanding in respect of interest payable or receivable as at 31 May 2019 or 2020. (iv) There were no dividends paid or declared during the year. Required: (a) Prepare a cash flow statement for Nobrie for the year ended 31 May 2020 in accordance with IAS 7 Cash Flow Statements. (35 marks) (b) Comment on the cash flow statement. (10 marks)

Answer rating: 100% (QA)

a Nobrie Cash Flow Statement for the Year Ended 31 May 2020 2020 RM000 2019 RM000 Operating Activities Net Profit before Tax 42769 31881 Adjustments D... View the full answer