The following are the financial statements of Darussunnah Bhd: Darussunnah Bhd Statement of Profit or Loss...

 

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The following are the financial statements of Darussunnah Bhd: Darussunnah Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017 RM Turnover 436,300,000 Cost of sales -275,500,000 160,800,000 Gross profit Administrative expenses Selling and distribution cost Operating profit -106,680,000 -35.000.000 19,120,000 Finance costs -2,000,000 Increase in fair value of investment property Loss on foreign currency translation 710,000 -140,000 Investment income 640,000 Gain on disposal of long-term investment 550,000 18,880,000 Profit before tax Taxation -7,000,000 Profit for the year Other comprehensive income: Surplus on revaluation of land Total comprehensive income 11,880,000 3,000,000 14.880.000 Darussunnah Bhd Statement of Changes in Equity for the year ended 31 December 2017 Asset Retained Ordinary shares Revaluation Reserve profit RM RM RM Balance as at 1 January 2017 Revaluation surplus 1,039,830,000 130,780,000 420,000 3,000,000 Issue of shares 116,860,000 Profit for the year 11,880,000 Dividend -5,600,000 Balance as at 31 December 2017 1 156 690 000 137 060 000 3 420 000 Darussunnah Bhd Statement of Financial Position as at 31 December . 2016 2017 Non-current assets RM RM Property, plant and equipment Investment property Intangibles assets Long term investments 60,000,000 19,290,000 2,100,000 55,260,000 20,000,000 6,300,000 2,000,000 1,600,000 Current assets Inventories Accounts receivable 3,400,000 16,000,000 3,000,000 220,000 180,000 5,500,000 11,800,000 Short-term investments 9,500,000 Interest receivable 140,000 Tax recoverable 1,099,910,000 1,213.270.000 1,206,100,000 1,323,370,000 Cash at bank Total assets Financed by: Share capital 1,039,830,000 1,156,690,000 140,480,000 Reserves 131,200,000 Non-current liabilities Foreign Loan 1,520,000 1,260,000 5% Debentures 8,650,000 5,440,000 Current liabilities 14,000,000 3,400,000 1,200,000 600,000 300,000 1,206,100,000 1,323,370,000 Accounts payable Dividend payable 16,000,000 7,200,000 1,500,000 Bank overdraft Taxation payable Interest payable Total equity and liabilities 200,000 Additional information: 1. Part of the administrative expenses consisting of the depreciation charge for property, plant and equipment of RM6,000,000 and the amortisation charge for intangible assets of RM800,000. 2. There was a revaluation surplus on the property, plant and equipment upon revaluation on 31 December 2017. Part of the property, plant and equipment were disposed of at cost. 3. It is the policy of Darussunnah Bhd to measure its investment property based on fair value model. No new investment property was acquired during the year. The foreign loan is a long term loan from Dutch Bank obtained on 31 December 2016 amounted to USD400,000. The spot rate at the date is RM 3.80: USD 1. The company has repaid part of the loan amounted to USD100,000 on 30 June 2017 when the spot rate is RM4.00: USD1. The closing rate on 31 December 2017 is RM4.20: USD1. 4. 5. Details of intangible assets movement during the year were as follows: RM Balance as at 1 January 2017 Incurred and capitalised during the year Amortisation expense 2,100,000 5,000,000 -800,000 Balance as at 31 December 2017 6,300,000 6. The carrying value of long-term investment disposed was RM400,000. 7. Short-term investment are to be considered as cash and cash equivalent. 8. Last year's dividend payable were paid together with the current year's interim dividend of RM2,200,000. Required: Prepare a Statement of Cash Flow for Darussunnah Bhd for the year ended 31 December 2017 by using the direct method. a. Prepare a statement reconciling the profit before tax to cash flow from operations. b. (Show all relevant workings) (Total: 30 marks) The following are the financial statements of Darussunnah Bhd: Darussunnah Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2017 RM Turnover 436,300,000 Cost of sales -275,500,000 160,800,000 Gross profit Administrative expenses Selling and distribution cost Operating profit -106,680,000 -35.000.000 19,120,000 Finance costs -2,000,000 Increase in fair value of investment property Loss on foreign currency translation 710,000 -140,000 Investment income 640,000 Gain on disposal of long-term investment 550,000 18,880,000 Profit before tax Taxation -7,000,000 Profit for the year Other comprehensive income: Surplus on revaluation of land Total comprehensive income 11,880,000 3,000,000 14.880.000 Darussunnah Bhd Statement of Changes in Equity for the year ended 31 December 2017 Asset Retained Ordinary shares Revaluation Reserve profit RM RM RM Balance as at 1 January 2017 Revaluation surplus 1,039,830,000 130,780,000 420,000 3,000,000 Issue of shares 116,860,000 Profit for the year 11,880,000 Dividend -5,600,000 Balance as at 31 December 2017 1 156 690 000 137 060 000 3 420 000 Darussunnah Bhd Statement of Financial Position as at 31 December . 2016 2017 Non-current assets RM RM Property, plant and equipment Investment property Intangibles assets Long term investments 60,000,000 19,290,000 2,100,000 55,260,000 20,000,000 6,300,000 2,000,000 1,600,000 Current assets Inventories Accounts receivable 3,400,000 16,000,000 3,000,000 220,000 180,000 5,500,000 11,800,000 Short-term investments 9,500,000 Interest receivable 140,000 Tax recoverable 1,099,910,000 1,213.270.000 1,206,100,000 1,323,370,000 Cash at bank Total assets Financed by: Share capital 1,039,830,000 1,156,690,000 140,480,000 Reserves 131,200,000 Non-current liabilities Foreign Loan 1,520,000 1,260,000 5% Debentures 8,650,000 5,440,000 Current liabilities 14,000,000 3,400,000 1,200,000 600,000 300,000 1,206,100,000 1,323,370,000 Accounts payable Dividend payable 16,000,000 7,200,000 1,500,000 Bank overdraft Taxation payable Interest payable Total equity and liabilities 200,000 Additional information: 1. Part of the administrative expenses consisting of the depreciation charge for property, plant and equipment of RM6,000,000 and the amortisation charge for intangible assets of RM800,000. 2. There was a revaluation surplus on the property, plant and equipment upon revaluation on 31 December 2017. Part of the property, plant and equipment were disposed of at cost. 3. It is the policy of Darussunnah Bhd to measure its investment property based on fair value model. No new investment property was acquired during the year. The foreign loan is a long term loan from Dutch Bank obtained on 31 December 2016 amounted to USD400,000. The spot rate at the date is RM 3.80: USD 1. The company has repaid part of the loan amounted to USD100,000 on 30 June 2017 when the spot rate is RM4.00: USD1. The closing rate on 31 December 2017 is RM4.20: USD1. 4. 5. Details of intangible assets movement during the year were as follows: RM Balance as at 1 January 2017 Incurred and capitalised during the year Amortisation expense 2,100,000 5,000,000 -800,000 Balance as at 31 December 2017 6,300,000 6. The carrying value of long-term investment disposed was RM400,000. 7. Short-term investment are to be considered as cash and cash equivalent. 8. Last year's dividend payable were paid together with the current year's interim dividend of RM2,200,000. Required: Prepare a Statement of Cash Flow for Darussunnah Bhd for the year ended 31 December 2017 by using the direct method. a. Prepare a statement reconciling the profit before tax to cash flow from operations. b. (Show all relevant workings) (Total: 30 marks)

Answer rating: 100% (QA)

Cash Flow from operating activities In RM 000 in RM 000 Cash received from customers 440500 Cash paid to suppliers 279600 Cash paid to employees Administrative Expenses 99880 Cash paid for selling and ... View the full answer