FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Statement of Cash Flow -
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Prominent Sdn Bhd |
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Statement of Cash Flow |
||
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For the Year Ended September 30, 2022 |
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Cash Flow from Operating Activities: |
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Profit before interest and taxes |
65,500 |
|
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Adjustments for non cash Items: |
||
|
|
9,800 |
|
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Loss on Sale of an Assets |
700 |
10,500 |
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Changes in |
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Increase in Inventory |
(8300) |
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Decrease in Trade Receivable |
2,600 |
|
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Increase in Trade Payable |
1,400 |
(4300) |
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Cash Flow from Operations |
71,700 |
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Less: Tax Paid |
(15700) |
|
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Less: Interest Paid |
(2000) |
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Net Cash Flow from Operating Activities |
54,000 |
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Cash Flow from Investing Activities: |
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Sale of an Assets |
3,500 |
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Net Cash Flow from Investing Activities |
3,500 |
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Cash Flow from Financing Activities: |
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Dividend Paid |
(34800) |
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Issuance of Share Capital |
18,000 |
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Repayment of Bank Loan |
(32000) |
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Net Cash Flow from Financing Activities |
(48800) |
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Net Change in Cash |
8,700 |
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Cash Balance, Beginning |
8,600 |
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Cash Balance, Ending |
17,300 |
Explain why profit should be reconciled to net operating
this question to explain your answer.
Transcribed Image Text:Less Provision for bad (1.700)
debts
Net trade receivables
37,400
(1,400)
34,800
4. The current tax payable at 30 September 2021 was paid in May 2022.
5.
The proposed dividend for the year 30 September 2023 is RM29,600 and the proposed
dividend for the year 30 September 2022 was RM34,800. If approved at the annual
general meeting (AGM), the dividend is paid for immediately. The AGM is usually held
three months after the reporting period end date (i.e., 30 September).
6. During the year, 10,000 shares were issued at RM1.80 per share.
7. Profit before interest and taxes for the year ended 30 September 2022 is RM65,500.
Transcribed Image Text:The following are the statements of financial position (balance sheet) of Prominent Sdn Bhd
as at 30 September 2021 and 30 September 2022.
ASSETS
Non-current assets
Property, plant and equipment at cost
Less Accumulated depreciation
Property, plant and equipment (Net)
Total non-current assets
Current assets
Inventory
Trade receivables
Cash and bank
Total current assets
Total assets
EQUITY AND LIABILITIES
Equity
Share capital
General reserve
Retained earnings
Total equity
Non-current liabilities
Bank Loan (10%)
Total non-current liabilities
Current liabilities
Trade payables
Current tax payable
Total current liabilities
Total liabilities
Total equity and liabilities
3. Trade receivables are made up of the following:
30
Sept 30
2021
RM
39,100
30 Sept 2021 30 Sept 2022
RM
RM
Trade receivables
173,000
(46,000)
127,000
127,000
2022
RM
36,200
48,400
37,400
8,600
94.400
221,400
68,000
6,400
47,900
122.300
52,000
52.000
31,400
15.700
47,100
99,100
221.400
165,000
(52,000)
113,000
113,000
Sept
56,700
34,800
17,300
108,800
221,800
86,000
9,600
54,900
150.500
Additional information
1. Non-current assets that cost RM8,000 and had a written down value (i.e., cost less
accumulated depreciation) of RM4,200 were disposed of during the year ended 30
September 2022 at a price of RM3,500. There were no other acquisitions or disposals of
non-current assets during the year.
20,000
20.000
2. Total depreciation on non-current assets for the year ended 30 September 2022 was
RM9,800.
32,800
18,500
51,300
71,300
221.800
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