Note to the accounts: 1. Property, plant and equipment 2020 2021 RM RM Motor Vehicles (cost) Accumulated depreciation Furnitures (cost) Accumulated depreciation Carrying value 340,000 249,300 (136,000) 170,000 (116,340) 250,800 (51,000) 323,000 (63,540) 320,220 Additional Information: Included in administrative expenses are depreciation charged for property, plant and equipment. 1. Viral Bhd disposed an old motor vehicle with a carrying amount of RM54,420 for cash. There was no purchase of motor vehicles during the year. The company also acquired a new furniture costing RM80,800 for cash during the year. 2. 3. Last year dividend payable was paid together with the current year interim dividend of RM48,750. The increase in the ordinary shares was due to the issue of new shares to the public during the year. 4. Part of the investment was sold during the year and no purchase of investment was made. 5. 6. The short-term fixed deposit qualified as cash equivalent. REQUIRED: Prepare the Statement of Cash Flow for the year ended 31 December 2021 for Viral Bhd using the DIRECT METHOD and in compliance with MFRS 107. a. b. A statement of cash flow is one of the statutory financial statements presented by companies. The statement must be prepared in compliance with MFRS 107. Briefly describe the cash flow performance of Viral Bhd for the financial year ended 31 December 2021,
Note to the accounts: 1. Property, plant and equipment 2020 2021 RM RM Motor Vehicles (cost) Accumulated depreciation Furnitures (cost) Accumulated depreciation Carrying value 340,000 249,300 (136,000) 170,000 (116,340) 250,800 (51,000) 323,000 (63,540) 320,220 Additional Information: Included in administrative expenses are depreciation charged for property, plant and equipment. 1. Viral Bhd disposed an old motor vehicle with a carrying amount of RM54,420 for cash. There was no purchase of motor vehicles during the year. The company also acquired a new furniture costing RM80,800 for cash during the year. 2. 3. Last year dividend payable was paid together with the current year interim dividend of RM48,750. The increase in the ordinary shares was due to the issue of new shares to the public during the year. 4. Part of the investment was sold during the year and no purchase of investment was made. 5. 6. The short-term fixed deposit qualified as cash equivalent. REQUIRED: Prepare the Statement of Cash Flow for the year ended 31 December 2021 for Viral Bhd using the DIRECT METHOD and in compliance with MFRS 107. a. b. A statement of cash flow is one of the statutory financial statements presented by companies. The statement must be prepared in compliance with MFRS 107. Briefly describe the cash flow performance of Viral Bhd for the financial year ended 31 December 2021,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do question b) only.
Transcribed Image Text:PART A: PREPARATION OF CASH FLOW STATEMENT
The following are the financial statements of Viral Bhd:
Viral Bhd
Statement of Profit or Loss and Other Comprehensive Income for the year ended
31 December 2021
RM
Turnover
1,164,160
Cost of Sales
(853,000)
311,160
Gross Profits
Gain on disposal of motor vehicles
Administrative expenses
Selling and distribution expenses
Investment income
15,580
(145,380)
(28,000)
45,800
(23,000)
176,160
Interest expenses
Profit before tax
Tax charge for the year
Profit for the year
(44,040)
132,120
Viral Bhd
Statement of Financial Position as at 31 December .
2020
2021
RM
RM
Non-Current Assets
Property plant and equipment (note 1)
323,000
320,220
804,000
Investments
1,340,000
Current Assets
66,000
123,800
102,700
77,000
Inventories
78,700
144,050
333,340
571,280
Account receivables
Bank
Short term fixed deposit
2,032,500
2,251,590
Equity and Liabilities
Ordinary Share Capital
Retained Earnings
1,650,000
1,900,000
228,570
172,200
Non-Current Liabilities
10% Bank Loan
90,000
45,000
Current Liabilities
Account payables
Тах раyables
Dividend payables
Accrued expenses
78,450
36,370
10,200
11,000
13,000
27,000
3,650
18,650
2,032,500
2,251,590
Transcribed Image Text:Note to the accounts:
1. Property, plant and equipment
2020
2021
RM
RM
Motor Vehicles (cost)
Accumulated depreciation
Furnitures (cost)
Accumulated depreciation
Carrying value
340,000
249,300
|(136,000)
170,000
(116,340)
250,800
(51,000)
323,000
(63,540)
320,220
Additional Information:
Included in administrative expenses are depreciation charged for property, plant and
equipment.
1.
Viral Bhd disposed an old motor vehicle with a carrying amount of RM54,420 for cash.
There was no purchase of motor vehicles during the year. The company also acquired
a new furniture costing RM80,800 for cash during the year.
2.
3.
Last year dividend payable was paid together with the current year interim dividend of
RM48,750.
4.
The increase in the ordinary shares was due to the issue of new shares to the public
during the year.
Part of the investment was sold during the year and no purchase of investment was
made.
5.
6.
The short-term fixed deposit qualified as cash equivalent.
REQUIRED:
Prepare the Statement of Cash Flow for the year ended 31 December 2021 for Viral Bhd
using the DIRECT METHOD and in compliance with MFRS 107.
a.
b.
A statement of cash flow is one of the statutory financial statements presented by
companies. The statement must be prepared in compliance with MFRS 107.
Briefly describe the cash flow performance of Viral Bhd for the financial year ended 31
December 2021.
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