Question 3 (25 Marks)

Michelle Pvt. Ltd. is a company involved in selling of consumer products. Below are the companys financial statements:

Michelle Pvt. Ltd.
Statement of Comprehensive Income for the year ended 31 March 2021
						RM
	Sales revenue					5,000,500
	Cost of goods sold					(4,002,200)
	Gross profit					998,300
	Operating Expenses Distribution expenses					(250,100)
	Admin expenses					(200,400)
	Depreciation expense					(200,000)
	Other operating expense					(20,000)
	Profit before interest & tax					327,800
	Interest expense					(50,000)
	Net profit before tax					277,800
	Income tax expense					(72,200)
	Net income					205,600
Michelle Pvt. Ltd.
Statement of Financial Position as at 31 March 2021
		2020			2021
				RM			RM
Non-current Assets
Net Book Value Plant & Machinery				1,400,000			2,000,000
Current Assets
Cash at Bank				250,000			20,000
Account Receivable				100,000			700,000
Inventory				250,000			380,000
Total Assets				2,000,000			3,100,000
Non-current Liabilities
Notes Payable				500,000			1,000,000
Current Liabilities
Accounts Payable				90,000			200,000
Administration expenses payable				10,000			30,000
Distribution payable				5,000			20,000
Shareholders Equity
Ordinary share capital				900,000			1,200,000
Retained earnings				495,000			650,000
Total Liabilities & Equities				2,000,000			3,100,000

Required:

(a) Prepare the statement of cash flows for Michelle Pvt Ltd. for the year ended 31 March 2021 using the direct method. (Show all calculations) (17 marks)

Note: please do it in MS Word