Based on the following data for Axia Bhd for 2018 and the preceding year ended December 31, 2018, prepare statement of cash flows. Assume that equipment costing RM125,000 was purchased for cash and equipment costing RM85,000 with accumulated depreciation of RM65,000 was sold for RM15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were net income of RM51,000 and cash dividends paid of RM12,000.

YearYear

20182017

RMRM

Cash100,00078,000 Accounts receivable (net)78,00085,000 Inventories101,50090,000 Equipment410,000 370,000 Accumulated depreciation(150,000)(158,000)

539,500 465,000

Accounts payable (merchandise creditors)58,500 55,000

Cash dividends payable5,000 4,000 Common stock, RM10 par200,000 170,000 Paid-in capital in excess of par--common stock62,000 60,000 Retained earnings214,000176,000

539,500465,000

(20 marks)