Please show a Statement of Cash Flows for the year ended 31 December 2022.

2. Explain why profit should be reconciled to net operating cash flows. Give examples from this question to explain your answer.

 

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Marksman Sdn Bhd's income statements for the years ended 31 December 2021 and 2022 and the statements of financial position (balance sheet) as at 31 December 2021 and 2022 are as follows: Income Statements for the years ended 31 December ... Revenue Cost of Sales Gross Profit Distribution expenses Administrative expenses Operating Profit before interest and taxation Interest payable Profit before taxation Taxation Net Profit Statement of financial position as at 31 December ASSETS Non-current assets Land and Buildings (Carrying amount) Plant and Machinery (Carrying amount) Total non-current assets Current assets Inventory Trade receivables Cash at bank Total current assets Total assets EQUITY AND LIABILITIES Equity Share capital Retained earnings Total equity Non-current liabilities Bank Loan (10%) Total non-current liabilities Current liabilities Bank overdraft Trade payables Tax payable Total current liabilities Total equity and liabilities 2021 RM000 207,000 (101,000) Land and Buildings Plant and Machinery 106,000 (22,000) (20,000) 64,000 (4,000) 60,000 (16,000) 44,000 2021 RM000 110,000 62,000 172,000 24,000 26,000 19,000 69,000 241,000 100,000 56,000 156,000 40,000 40,000 37,000 8,000 45,000 241,000 2021 RM000 2022 RM000 6,000 10,000 153,000 (76,000) 77,000 (20,000) (28,000) 29,000 (4,000) 25,000 (6,000) 19,000 2022 RM000 130,000 56,000 186,000 25,000 25,000 50,000 236,000 100,000 57,000 157,000 Additional information 1. Depreciation expenses included in 'cost of sales', 'distribution expenses', and administrative expenses' was as follows: 40,000 40,000 2,000 34,000 3,000 39,000 236,000 2022 RM000 10,000 12,000 2. There were no non-current asset disposals in either year. 3. The amount of cash paid for interest equalled the expense in each year. 4. Dividends were paid totalling RM18,000,000 in each year. 5. Companies pay tax of 50% during their accounting year and the other 50% in the following year. Marksman Sdn Bhd's income statements for the years ended 31 December 2021 and 2022 and the statements of financial position (balance sheet) as at 31 December 2021 and 2022 are as follows: Income Statements for the years ended 31 December ... Revenue Cost of Sales Gross Profit Distribution expenses Administrative expenses Operating Profit before interest and taxation Interest payable Profit before taxation Taxation Net Profit Statement of financial position as at 31 December ASSETS Non-current assets Land and Buildings (Carrying amount) Plant and Machinery (Carrying amount) Total non-current assets Current assets Inventory Trade receivables Cash at bank Total current assets Total assets EQUITY AND LIABILITIES Equity Share capital Retained earnings Total equity Non-current liabilities Bank Loan (10%) Total non-current liabilities Current liabilities Bank overdraft Trade payables Tax payable Total current liabilities Total equity and liabilities 2021 RM000 207,000 (101,000) Land and Buildings Plant and Machinery 106,000 (22,000) (20,000) 64,000 (4,000) 60,000 (16,000) 44,000 2021 RM000 110,000 62,000 172,000 24,000 26,000 19,000 69,000 241,000 100,000 56,000 156,000 40,000 40,000 37,000 8,000 45,000 241,000 2021 RM000 2022 RM000 6,000 10,000 153,000 (76,000) 77,000 (20,000) (28,000) 29,000 (4,000) 25,000 (6,000) 19,000 2022 RM000 130,000 56,000 186,000 25,000 25,000 50,000 236,000 100,000 57,000 157,000 Additional information 1. Depreciation expenses included in 'cost of sales', 'distribution expenses', and administrative expenses' was as follows: 40,000 40,000 2,000 34,000 3,000 39,000 236,000 2022 RM000 10,000 12,000 2. There were no non-current asset disposals in either year. 3. The amount of cash paid for interest equalled the expense in each year. 4. Dividends were paid totalling RM18,000,000 in each year. 5. Companies pay tax of 50% during their accounting year and the other 50% in the following year.

Answer rating: 100% (QA)

SOLUTION Here is the Statement of Cash Flows for the year ended 31 December 2022 based on the information provided Statement of Cash Flows for the yea... View the full answer