Acquisition of non current 5 82000 Net cash flow from investing

Acquisition of non current 5 82000 net cash flow from

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Acquisition of non-current assets (37 + 40 + 5) (82,000) Net cash flow from investing activities (42,000) Cash flows from financing activities: Proceeds from the issue of share capital at a premium 40,000 Redemption of 6% Debentures (40,000) Dividend paid (5,000) Net cash flow from financing activities (5,000) Net increase in cash and cash equivalent 40,000 Cash and cash equivalent at the beginning of the period (29,000) Cash and cash equivalent at the end of the period 11,000 Note on cash and cash equivalent 31 December 2013 31 December 2012 Cash at bank RM11,000 - Bank overdraft - (29,000) Total 11,000 (29,000) Tax payable account Bank 3,000 SOCI 5,000 Accrued c/d 2,000 5,000 5,000 3
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Retained Profit account Tax charged 5,000 Balance b/d 43,000 Dividend paid 5,000 PBT 82,000 Balance c/d 115,000 125,000 125,000 b. The usefulness of statement of cash flows are as follows: The statement of cash flows provides information about changes in a reporting entity’s economic resources and claims / resulting from financial performance reflected by past cash flows. The statement of cash flow assists users to properly assess the prospects for future cash flows from the reporting entity. / It provides information about the changes in cash and cash equivalents during a financial year / and how well the company manages its cash flows. The statement provides information on cash flows from operating activities, investing activities and financial activities which are useful to both internal and external users of financial statements. Information derived from the statement of cash flow is more useful and relevant for decision making as compared to the statement of profit or loss where non-cash items are excluded. The statement of cash flows can be understood easily compared to the statement of profit or loss as the profit or loss for the year is arrived using accrual principle. The creditors will be able to assess the ability of the company to pay them 4
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QUESTION 2 (FAR460, UiTM, DECEMBER 2015) The following are the draft financial statements of Bestari Bhd: Draft Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2014 RM‘000 Turnover 71,600 Cost of sales (19,680) Gross profit 51,920 Distribution expenses (18,140) Administration expenses (20,720) Other income 300 Profit before tax 13,360 Income tax expense (1,750) Profit for the year 11,610 Surplus on revaluation 350 Total Comprehensive Income 11,960 Draft Statement of Financial Position as at 31 December 2014 2013 RM‘000 RM‘000 Assets Property, plant and equipment 49,510 44,425 Intangible assets 11,250 12,000 Marketable securities - 500 Non-current investment 8,500 10,000 Inventories 16,500 17,100 Trade receivables 9,990 6,000 Bank 8,830 5,250 Tax recoverable - 1,250 104,580 96,525 Equity and Liabilities Shares capital 79,400 73,000 Retained earnings 17,165 15,575 Asset revaluation reserves 350 - Loan 1,875 3,700 Tax payable 240 - Trade payables 5,550 4,250 104,580 96,525 Additional information: 1.
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