Question: The BCD Co has prepared the data as per above. In December 2016, BCD paid RM54 million cash for the new building acquired to accommodate

 The BCD Co has prepared the data as per above. In

December 2016, BCD paid RM54 million cash for the new building acquired

The BCD Co has prepared the data as per above. In December 2016, BCD paid RM54 million cash for the new building acquired to accommodate an expansion of operations. This was financed partly by a new issue of long term debt for RM40 million. During 2016, the company also sold fixed asset for RM5.0 million cash, which was equal to their book value. All sales and purchases of merchandise were on credit As the net income of RM4 million was the highest in the company's history, Mr Bakar, the chairman of the board, was perplexed by the company's extremely low cash balance. Question: a. Prepare a statement of cash flows, ignore tax. Use the indirect method for reporting cash flows from operating activities. b. What is revealed by the statement of cash flows? Does it help you to reduce Mr Bakar's puzzlement? Why

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!