Fantastic Group Berhad bought 70% shares in its subsidiary many years ago. The consolidated financial statements...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fantastic Group Berhad bought 70% shares in its subsidiary many years ago. The consolidated financial statements were presented below: Fantastic Group Berhad Consolidated Statement of Profit or Loss and Movement in Retained Earnings for the year ended 31 December 2020 Sales Cost of goods sold Gross profit Interest incomes Operating expenses Operating profit Dividend incomes Interest expenses Net profit before taxation Tax expenses Net profit for the year Net profit attributable to: Non-controlling interest Owners of the parent company Movements in Group's Retained Profits: Retained profits b'f Net profits Available for appropriation Dividends paid Retained profits c/f RM000 28,400 (8,520) 19,880 220 (4.000) 16,100 900 (730) 16,270 (3,200) 13,070 3,921 9,149 13,070 8,400 9,149 17.549 (2.700) 14,849 Non-current assets Property, plant and equipment Investment in associate company Investment in shares Current assets Inventories Trade receivables Fixed deposits and short-term deposits Cash in hand and at bank Total assets Financed by Ordinary share capital Retained profits Fantastic Group Berhad Consolidated Statement of Financial Position as at 31 December NCI's equity Non-current liabilities 8% convertible debentures maturing in 2030 Current liabilities Track payables Bank overdraft 2 3 4 5 6 7 8 2020 RM1000 17,340 1,600 3,000 7,500 7,000 5,500 2,000 22,000 43,940 8,000 14,849 22,849 6,291 6,000 5,300 3,500 8,800 43,940 2019 RM000 7,920 5,000 3,500 2.300 1,600 12,400 25.320 Total equity and liabilities Additional information: Interest expenses consist of debenture interest RM430,000 and the balance for bank overdraft interest. 7,000 8,400 15,400 2.520 4,600 2,800 7.400 25.320 The annual depreciation for the group was RM1.370,000 and this amorast was included in the operating expenses. Fixed deposits were regarded as cash and cash equivalent by the group, and the interests received were added onto the principal amounts Dividend received from subsidiary was RM500,000 and this included the amounts for the shareholders of parent company and the minority shareholders. Income tax for current year had been paid. Dividend incomes were from the investment in shares listed on Bursa Malaysia, The 8% convertible debenture was issued on 1 January 2020 to finance the expansion of the business. Every 1,000 debentare shares can be converted into 500 ordinary shares. The ordinary shares were issued and paid-up at RMI per share. Required: Determine the cash inflows or cash outflows of appropriate accounts for the relevant adjustments. (9.5 marks) (b) Present the Consolidated Statement of Cash Flow for the year-ended 31 December 2020 using the indirect method. (11 marks) Compute the following cash flow ratios of the company and comment on the results: Operating cash flow/current maturities of debentures and loans Operating cash flows (i) Operating cash flow/total deht (1) Operating cash flow per share (c) (1) Debentures +Loans + Accounts Payables Operating cash flows Total debts Operating cash flows Total number of shares (4.5 marks) Fantastic Group Berhad bought 70% shares in its subsidiary many years ago. The consolidated financial statements were presented below: Fantastic Group Berhad Consolidated Statement of Profit or Loss and Movement in Retained Earnings for the year ended 31 December 2020 Sales Cost of goods sold Gross profit Interest incomes Operating expenses Operating profit Dividend incomes Interest expenses Net profit before taxation Tax expenses Net profit for the year Net profit attributable to: Non-controlling interest Owners of the parent company Movements in Group's Retained Profits: Retained profits b'f Net profits Available for appropriation Dividends paid Retained profits c/f RM000 28,400 (8,520) 19,880 220 (4.000) 16,100 900 (730) 16,270 (3,200) 13,070 3,921 9,149 13,070 8,400 9,149 17.549 (2.700) 14,849 Non-current assets Property, plant and equipment Investment in associate company Investment in shares Current assets Inventories Trade receivables Fixed deposits and short-term deposits Cash in hand and at bank Total assets Financed by Ordinary share capital Retained profits Fantastic Group Berhad Consolidated Statement of Financial Position as at 31 December NCI's equity Non-current liabilities 8% convertible debentures maturing in 2030 Current liabilities Track payables Bank overdraft 2 3 4 5 6 7 8 2020 RM1000 17,340 1,600 3,000 7,500 7,000 5,500 2,000 22,000 43,940 8,000 14,849 22,849 6,291 6,000 5,300 3,500 8,800 43,940 2019 RM000 7,920 5,000 3,500 2.300 1,600 12,400 25.320 Total equity and liabilities Additional information: Interest expenses consist of debenture interest RM430,000 and the balance for bank overdraft interest. 7,000 8,400 15,400 2.520 4,600 2,800 7.400 25.320 The annual depreciation for the group was RM1.370,000 and this amorast was included in the operating expenses. Fixed deposits were regarded as cash and cash equivalent by the group, and the interests received were added onto the principal amounts Dividend received from subsidiary was RM500,000 and this included the amounts for the shareholders of parent company and the minority shareholders. Income tax for current year had been paid. Dividend incomes were from the investment in shares listed on Bursa Malaysia, The 8% convertible debenture was issued on 1 January 2020 to finance the expansion of the business. Every 1,000 debentare shares can be converted into 500 ordinary shares. The ordinary shares were issued and paid-up at RMI per share. Required: Determine the cash inflows or cash outflows of appropriate accounts for the relevant adjustments. (9.5 marks) (b) Present the Consolidated Statement of Cash Flow for the year-ended 31 December 2020 using the indirect method. (11 marks) Compute the following cash flow ratios of the company and comment on the results: Operating cash flow/current maturities of debentures and loans Operating cash flows (i) Operating cash flow/total deht (1) Operating cash flow per share (c) (1) Debentures +Loans + Accounts Payables Operating cash flows Total debts Operating cash flows Total number of shares (4.5 marks)
Expert Answer:
Answer rating: 100% (QA)
a Cash inflows or cash outflows of appropriate accounts for the relevant adjustments Interest expenses The debenture interest of RM430000 is a cash ou... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Amanda Webb opened a home health care business under the name Home Care, Inc. During its first month of operations, the business had the following transactions: a. Sold common stock to Ms. Webb and...
-
Triumphant Group of Companies is a conglomerate in various types of businesses. The consolidated financial statements are presented below: Triumphant Group Berhad Consolidated Statement of Proft or...
-
Rumpus plc is a public listed manufacturing company. Its summarized consolidated financial statements for the year ended 31 March 2014 (and 2013 comparatives where relevant) are as follows: Rumpus...
-
A 110 g hockey puck sent sliding over ice is stopped in 15 m by the frictional force on it from the ice. (a) If its initial speed is 6.0m/s, what is the magnitude of the frictional force? (b) What is...
-
How are the following organizations and documents related? COSO The 1992 internal control framework The 2004 ERM integrated framework The 2013 updated framework The Securities and Exchange...
-
As the new accountant for Cohen & Co., you've been asked to provide a succinct analysis of operating results for the year just ended. You obtain the following information that pertains to the...
-
Carter Roofing, Corp., was recently formed as a corporation. The balance of each item in the companys accounting equation is shown for December 1 and for each of the following business days....
-
Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years...
-
Read this article: https://www.foxnews.com/us/be-honest-are-you-the-office-bully read the article Be Honest: Are You the Office Bully? or copy and paste the following link into your search engine....
-
Cascade Company has four employees. All are paid on a monthly basis. The fiscal year of the business is June 1 to May 31. The accounts kept by Cascade include the following: .:. The following...
-
Explain why the two component method of calculating ROI is more useful.
-
There are a total of 1,050 workers in the economy, and workers can either seek employment in one of two sectors: Sector 1 or Sector 2. The graph below depicts the marginal revenue product curves for...
-
The contractor was awarded a contract for the construction of a small commercial building for the sum of $192000. The contract period was agreed to be 108 days. The critical path schedule is given...
-
I suggest going with the first option, which is to do the clinical research in Albania. The first approach is the most cost-efficient and successful way to ensure that the drug quickly hits the...
-
compose the blog about myself ( 2500 words)for blog on my portfolio My name is Ivana Zucalo Studying for Digital Marketing Specialist Passionate for Canva, artistic , DYI projects Previously work as...
-
3. Suppose you and your friends look up the prices and quantities of Ramen noodles consumed in the U.S. over the last 10 years. (See figure below.) Your friend Timmy claims this traces out the demand...
-
Derek will deposit $1,635.00 per year into an account starting today and ending in year 20.00. The account that earns 8.00%. How much will be in the account 20.0 years from today?
-
Find the center of mass of a thin triangular plate bounded by the y-axis and the lines y = x and y = 2 - x if (x, y) = 6x + 3y + 3.
-
Which of the following items is normally translated the same way under both the current rate and temporal methods of translation? a. Inventory b. Equipment c. Sales revenue d. Depreciation expense
-
This exercise consists of two parts. Part A. The following table summarizes the assets of the Rocker Division (a separate cash-generating unit) at December 31, Year 5, prior to testing goodwill for...
-
Assuming a forward contract to sell 100,000 Israeli shekels was entered into on December 1, Year 1, as a fair value hedge of a foreign currency receivable, what would be the net impact on net income...
-
The inversion point of a gas can be mathematically expressed as (a) \(T_{i}=\frac{2 a b}{R}\) (b) \(T_{i}=\frac{2 b}{R a}\) (c) \(T_{i}=\frac{2 a}{R b}\) (d) None of these.
-
Residual free energy is defined as (a) \(G^{R}=G-G^{\mathrm{ig}}\) (b) \(G^{R}=G^{\mathrm{ig}}-G\) (c) \(G^{R}=G+G^{\mathrm{ig}}\) (d) None of these.
-
Departure functions are useful to calculate the thermodynamic property of real fluids (a) When the \(P-V-T\) data of the substance is unavailable (b) When the \(P-V-T\) data of the substance is...
Study smarter with the SolutionInn App