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QUESTION 3 [20 MARKS] The balance sheet of Lara Ltd are as follows: RM RM Non-Current Assets Equipment (Cost) Less: Accumulated depreciation 31/12/2019 RM 28,500 (11,450) 17,050 18,570 8,470 (420) Current Assets Inventory Account receivable Less: Provision doubtful debts Cash and bank Total Assets Current Liabilities Account Payable 8,050 4,060 30,680 4,140 10,000 Non-Current Liabilities Loan Total Liabilities Net Assets (14,140) 16,540 33,590 35,760 10,240 Capital Opening Add: Net profit Cash introduced Less: Drawing Total Capital (12,410) 33,590 RM RM Non-Current Assets Equipment (Cost) Less: Accumulated depreciation 31/12/2020 RM 26,100 (13,010) 13,090 16,250 Current Assets Inventory Account receivable Less: Provision doubtful debts Cash and bank Total Assets 14,190 (800) 13,390 3,700 33,340 Current Liabilities Account Payable 5,730 4,000 Non-Current Liabilities Loan Total Liabilities Net Assets (9,730) 23,610 36,700 Capital Opening Add: Net profit Cash introduced Less: Drawing Total Capital 33,590 11,070 600 (8,560) 36,700 Additional Note: Equipment with a book value of RM1,350 was sold for RM900. Depreciation of equipment during the year was RM2,610 Required: Preparing the Statement of Cash Flow using indirect method