A. SintokTech Bhd develops and markets semiconductor-related products. The comparative Statement of Financial Position for SintokTech Bhd as at 31 December 2021 were as follows: SintokTech Bhd Statement of Financial Position As at 31 December 2021 2021 2020 RM RM CURRENT ASSETS Inventory Accounts receivable 8,460,000 6,521,250 37.717,500 6,345,000 3,877,500 9.165.000 19.387,500 Cash 52.698,750 NON-CURRENT ASSETS Equity investment Building Less: Accumulated depreciation-building Equipment Less: Accumulated depreciation-equipment Intangible assets (net) -0- 2,115,000 20,973,750 (4,230,000) 14,100,000 (3,172,500) 4,406.250 8,250,000 -0- 31,725,000 (1,410,000) 3.525,000 42.090,000 94,788,750 34,192,500 TOTAL ASSETS 53,580,000 EQUITY Share capital Retained earnings Total equity 23,265,000 38,565,000 14.628,750 53,193,750 4,230,000 27.495,000 CURRENT LIABILITIES Accounts payable Dividends payable Short-term notes payable 2,115,000 3,525,000 3,525,000 -0- 2,115,000 5,640,000 2,820,000 8.460.000 NON-CURRENT LIABILITY Long-term notes payable 35,955,000 17,625,000 TOTAL LIABILITIES 41,595,000 26,085,000 53,580,000 TOTAL EQUITY AND LIABILITIES 94,788,750 Additional information: 1. Equity investments were sold at RM1,198,500 above their cost. 2. Dividends paid during the year were RM3,525,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q3A

Prepare the Statement of Cash Flows for SintokTech Bhd for the year ended 31 December
2021 using the indirect method in accordance with MFRS 107 Statement of Cash Flows.

SintokTech Bhd owned a building at the beginning of the financial year. On 1
January 2021, the building was sold for RM22,560,000. A new building was
acquired on 30 December 2021 by issuing 3.3 million shares at RM2.50 per share.
4.
3.
An equipment was sold for RM1,762,500. The equipment had a cost of
RM7,755,000 and was 40% depreciated at the time of disposal.
5.
No disposal or new purchase of intangible assets during the year 2021.
A long-term note for RM25,380,000 was issued for the acquisition of new
equipment.
7.
6.
RM7,050,000 of the long-term note payable were paid by issuing ordinary shares.
8.
Interest expense of RM1,410,000 and income tax expense of RM4,582,500 were
paid in cash.
Profit before tax for the year 2021 was RM14,981,250. Included in the
determination of the profit were as follows:
9.
RM
Depreciation expenses
Loss on sale of equipment
Gain on sale of building
Gain on sale of equity investment
1,339,500
2,890,500
5,816,250
1,198,500
Transcribed Image Text:SintokTech Bhd owned a building at the beginning of the financial year. On 1 January 2021, the building was sold for RM22,560,000. A new building was acquired on 30 December 2021 by issuing 3.3 million shares at RM2.50 per share. 4. 3. An equipment was sold for RM1,762,500. The equipment had a cost of RM7,755,000 and was 40% depreciated at the time of disposal. 5. No disposal or new purchase of intangible assets during the year 2021. A long-term note for RM25,380,000 was issued for the acquisition of new equipment. 7. 6. RM7,050,000 of the long-term note payable were paid by issuing ordinary shares. 8. Interest expense of RM1,410,000 and income tax expense of RM4,582,500 were paid in cash. Profit before tax for the year 2021 was RM14,981,250. Included in the determination of the profit were as follows: 9. RM Depreciation expenses Loss on sale of equipment Gain on sale of building Gain on sale of equity investment 1,339,500 2,890,500 5,816,250 1,198,500
A.
SintokTech Bhd develops and markets semiconductor-related products. The comparative
Statement of Financial Position for SintokTech Bhd as at 31 December 2021 were as
follows:
SintokTech Bhd
Statement of Financial Position
As at 31 December 2021
2021
2020
RM
RM
CURRENT ASSETS
6,345,000
3,877,500
9,165.000
19,387.500
Inventory
8,460,000
Accounts receivable
Cash
6,521,250
37.717,500
52.698,750
NON-CURRENT ASSETS
Equity investment
Building
Less: Accumulated depreciation-building
Equipment
Less: Accumulated depreciation-equipment
Intangible assets (net)
-0-
2,115,000
8,250,000
20,973,750
(4,230,000)
14,100,000
(3,172,500)
4,406,250
-0-
31,725,000
(1,410,000)
3,525,000
42.090,000
94,788,750
34,192,500
TOTAL ASSETS
53,580,000
EQUITY
Share capital
Retained earnings
Total equity
38,565,000
14.628,750
53,193,750
23,265,000
4,230,000
27.495.000
CURRENT LIABILITIES
Accounts payable
Dividends payable
Short-term notes payable
3,525,000
2,115,000
3,525,000
2,820,000
8,460,000
-0-
2,115,000
5,640,000
NON-CURRENT LIABILITY
Long-term notes payable
35,955,000
17,625,000
26.085.000
53.580,000
TOTAL LIABILITIES
41,595,000
TOTAL EQUITY AND LIABILITIES
94,788,750
Additional information:
Equity investments were sold at RM1,198,500 above their cost.
Dividends paid during the year were RM3,525,000.
1.
2.
Transcribed Image Text:A. SintokTech Bhd develops and markets semiconductor-related products. The comparative Statement of Financial Position for SintokTech Bhd as at 31 December 2021 were as follows: SintokTech Bhd Statement of Financial Position As at 31 December 2021 2021 2020 RM RM CURRENT ASSETS 6,345,000 3,877,500 9,165.000 19,387.500 Inventory 8,460,000 Accounts receivable Cash 6,521,250 37.717,500 52.698,750 NON-CURRENT ASSETS Equity investment Building Less: Accumulated depreciation-building Equipment Less: Accumulated depreciation-equipment Intangible assets (net) -0- 2,115,000 8,250,000 20,973,750 (4,230,000) 14,100,000 (3,172,500) 4,406,250 -0- 31,725,000 (1,410,000) 3,525,000 42.090,000 94,788,750 34,192,500 TOTAL ASSETS 53,580,000 EQUITY Share capital Retained earnings Total equity 38,565,000 14.628,750 53,193,750 23,265,000 4,230,000 27.495.000 CURRENT LIABILITIES Accounts payable Dividends payable Short-term notes payable 3,525,000 2,115,000 3,525,000 2,820,000 8,460,000 -0- 2,115,000 5,640,000 NON-CURRENT LIABILITY Long-term notes payable 35,955,000 17,625,000 26.085.000 53.580,000 TOTAL LIABILITIES 41,595,000 TOTAL EQUITY AND LIABILITIES 94,788,750 Additional information: Equity investments were sold at RM1,198,500 above their cost. Dividends paid during the year were RM3,525,000. 1. 2.
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