Question $2$

You have been given the following information relating to a limited liability company called Nobrie. This

company is preparing its financial statements for the year ended $31$ May $2020.$

Nobrie

Income statement for the vear ended $31$ Mav $2020$

Additional information

$($i$)$ During the year ended $31$ May $2020,$ the company sold a piece of equipment for RM$3,053,000,$ realising

a profit of RM$1,540,000.$ There were no other disposals of non$-$current assets during the year.

$($ii$)$ Profit from operations is stated after charging depreciation of RM$5,862,000.$

$($iii$)$ There were no amounts outstanding in respect of interest payable or receivable as at $31$

May $2019$ or $2020.$

$($iv$)$ There were no dividends paid or declared during the year.

Required:

$($a$)$ Prepare a cash flow statement for Nobrie for the year ended $31$ May $2020$ in accordance with IAS $7$

Cash Flow Statements.

$($b$)$ Comment on the cash flow statement