How to solve

QUESTION $3$

$($a$)$ Explain the purpose of the Statement of Cash flow and how cash flow is different from

the accrual income measure of performance.

$($b$)$ Amlex Holdings Bhd reported the following profit & loss statement and comparative

statement of financial position for $2020$ and $2021,$ along with the transaction data for

Amlex Holdings Bhd

Stockholders' Equity

Common stock

Retained earnings

Less: Treasury stock

Total liabilities and Equity

Transaction data for $2021$

$($a$)$ Purchase of equipment

RM

$($b$)$ Payment of dividend

$($c$)$ Issuance of common stock to retire bonds payable

$($d$)$ Issuance of bonds payable to borrow cash

$($e$)$ Cash receipts from the issuance of common stock

$($f$)$ Cash receipts from the sale of equipment $($book value RM $95,000)$

$($g$)$ Purchase of treasury stock

Required:

$($i$)$ Use the indirect method to prepare a Statement of Cash flow for Amlex Holdings

Bhd for the year ended $31$ December, $2021.$

$($ii$)$ Show the relevant T$-$Accounts in the preparation of the cash flow statement.