The following are the financial statements of AFFA Bhd: AFFA Bhd Statement of Profit or Loss...
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The following are the financial statements of AFFA Bhd: AFFA Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 RM'000 Revenues 29,300 Cost of sales (11.520) 17,780 Gross profit Rental income 66 Administrative costs (1,494) Selling and distribution cost Operating profit (352) 16,000 Finance costs (180) (220) Loss on disposal of long-term investment Gain on fair value of investment property 150 Investment income 228 Gain on disposal of property, plant and equipment 272 Profit before tax 16,250 Тахation (3,930) Profit for the year 12,320 Other comprehensive income: Revaluation surplus 200 Total comprehensive income 12,520 Ordinary Shares Asset Revaluation Retained Profit Reserve RM'000 RM'000 RM'000 Balance as at 1 January 2020 Revaluation surplus Issue shares 5,000 200 22,920 11,160 2,880 Bonus shares 3,760 (3,760) 12,320 (7.640) 12,080 Profit for the year Dividend paid Balance as at 31 December 2020 29,560 5,200 AFFA Bhd Statement of Financial Position as at 31 December 2019 2020 RM'000 RM'000 Non-current assets Property, plant and equipment 30,000 34,000 Investment property 6,400 6,550 3,320 39,720 Long-term investments 2,860 43,410 Current assets Inventories 1,030 1,120 Accounts receivable 1,510 1,830 Short-term investments 612 1,779 Interest receivable 136 119 Tax recoverable 58 Cash 604 2,930 3,950 7,778 TOTAL ASSETS 43,670 51,188 Financed by: Share capital 22,920 29,560 Reserves 16,160 17,280 39,080 46,840 Non-current liabilities Long term loan 2,470 2,040 Current liabilities Accounts payable 1,830 2,228 Bank overdraft 220 Taxation payable 32 Accrued interest 40 15 Accrued distribution expenses 30 33 4,590 4,348 TOTAL EQUITY AND LIABILITIES 43,670 51,188 Additional information: The current year's depreciation for property, plant and equipment of RM680,000 was charged in the administrative costs. 1. 2. A machinery with a carrying amount of RM470,000 was realised for cash during the year. There was an acquisition of new property, plant and equipment during the year. It is the policy of AFFA Bhd to measure its investment property based on fair value model. No new investment property was acquired during the year. 3. 4. Long-term investment at the carrying value of RM700,000 was disposed during the current year. 5. The increase in ordinary shares were due to additional shares issued at fair value for cash and also an issue of bonus share. 6. Short-term investments are to be considered as cash and cash equivalent. Required: а. Prepare a Statement of Cash Flow for AFFA Bhd for the year ended 31 December 2020 by using the direct method. b. Prepare a statement reconciling the profit before tax to cash flow from operations. (Show all relevant workings) (Total: 30 marks) The following are the financial statements of AFFA Bhd: AFFA Bhd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 RM'000 Revenues 29,300 Cost of sales (11.520) 17,780 Gross profit Rental income 66 Administrative costs (1,494) Selling and distribution cost Operating profit (352) 16,000 Finance costs (180) (220) Loss on disposal of long-term investment Gain on fair value of investment property 150 Investment income 228 Gain on disposal of property, plant and equipment 272 Profit before tax 16,250 Тахation (3,930) Profit for the year 12,320 Other comprehensive income: Revaluation surplus 200 Total comprehensive income 12,520 Ordinary Shares Asset Revaluation Retained Profit Reserve RM'000 RM'000 RM'000 Balance as at 1 January 2020 Revaluation surplus Issue shares 5,000 200 22,920 11,160 2,880 Bonus shares 3,760 (3,760) 12,320 (7.640) 12,080 Profit for the year Dividend paid Balance as at 31 December 2020 29,560 5,200 AFFA Bhd Statement of Financial Position as at 31 December 2019 2020 RM'000 RM'000 Non-current assets Property, plant and equipment 30,000 34,000 Investment property 6,400 6,550 3,320 39,720 Long-term investments 2,860 43,410 Current assets Inventories 1,030 1,120 Accounts receivable 1,510 1,830 Short-term investments 612 1,779 Interest receivable 136 119 Tax recoverable 58 Cash 604 2,930 3,950 7,778 TOTAL ASSETS 43,670 51,188 Financed by: Share capital 22,920 29,560 Reserves 16,160 17,280 39,080 46,840 Non-current liabilities Long term loan 2,470 2,040 Current liabilities Accounts payable 1,830 2,228 Bank overdraft 220 Taxation payable 32 Accrued interest 40 15 Accrued distribution expenses 30 33 4,590 4,348 TOTAL EQUITY AND LIABILITIES 43,670 51,188 Additional information: The current year's depreciation for property, plant and equipment of RM680,000 was charged in the administrative costs. 1. 2. A machinery with a carrying amount of RM470,000 was realised for cash during the year. There was an acquisition of new property, plant and equipment during the year. It is the policy of AFFA Bhd to measure its investment property based on fair value model. No new investment property was acquired during the year. 3. 4. Long-term investment at the carrying value of RM700,000 was disposed during the current year. 5. The increase in ordinary shares were due to additional shares issued at fair value for cash and also an issue of bonus share. 6. Short-term investments are to be considered as cash and cash equivalent. Required: а. Prepare a Statement of Cash Flow for AFFA Bhd for the year ended 31 December 2020 by using the direct method. b. Prepare a statement reconciling the profit before tax to cash flow from operations. (Show all relevant workings) (Total: 30 marks)
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Cash receipts from customers amount sales 29300000 add accounts receivable at the beginning of the year 1510000 less accounts receivable at the end of ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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