The following information is relevant: i. Statement of Comprehensive Income extract for the year ended 31 December 2022: Operating profit before interest and tax Interest expense Interest receivable Profit before tax Net income tax credit Profit for the period Note: the interest expense includes hire purchase interest. ii. The details of the tangible non-current assets are: Cost RM'000 21,200 17,000 At 31 December 2021 At 31 December 2022 Show Transcribed Text RM'000 270 (260) 40 50 Accumulated depreciation RM'000 4,400 5,400 50 100 Carrying value RM'000 16,800 11,600 During the year GoGo Sdn Bhd sold a plant for its fair value of RM12 million. The profit on the sale of the plant has been included in operating profit. At the date of the sale it had a carrying value of RM7.4 million based on a previous revaluation of RM8.6 million less the accumulated depreciation of RM1.2 million since the revaluation. The surplus on the revaluation reserve was related entirely to the plant. No other disposals of non-current assets were made during the year. Plant acquired under hire purchase during the year was RM2.0 million. (b) Discuss the benefits of presenting the cash flow information.
The following information is relevant: i. Statement of Comprehensive Income extract for the year ended 31 December 2022: Operating profit before interest and tax Interest expense Interest receivable Profit before tax Net income tax credit Profit for the period Note: the interest expense includes hire purchase interest. ii. The details of the tangible non-current assets are: Cost RM'000 21,200 17,000 At 31 December 2021 At 31 December 2022 Show Transcribed Text RM'000 270 (260) 40 50 Accumulated depreciation RM'000 4,400 5,400 50 100 Carrying value RM'000 16,800 11,600 During the year GoGo Sdn Bhd sold a plant for its fair value of RM12 million. The profit on the sale of the plant has been included in operating profit. At the date of the sale it had a carrying value of RM7.4 million based on a previous revaluation of RM8.6 million less the accumulated depreciation of RM1.2 million since the revaluation. The surplus on the revaluation reserve was related entirely to the plant. No other disposals of non-current assets were made during the year. Plant acquired under hire purchase during the year was RM2.0 million. (b) Discuss the benefits of presenting the cash flow information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information is relevant:
i. Statement of Comprehensive Income extract for the year ended 31 December
2022:
Operating profit before interest and tax
Interest expense
Interest receivable
Profit before tax
Net income tax credit
Profit for the period
Note: the interest expense includes hire purchase interest.
ii. The details of the tangible non-current assets are:
Cost
RM'000
21,200
17,000
At 31 December 2021
At 31 December 2022
Show Transcribed Text
RM'000
270
(260)
40
50
Accumulated depreciation
RM'000
4,400
5,400
50
100
Carrying value
RM'000
16,800
11,600
During the year GoGo Sdn Bhd sold a plant for its fair value of RM12 million. The
profit on the sale of the plant has been included in operating profit. At the date of the
sale it had a carrying value of RM7.4 million based on a previous revaluation of
RM8.6 million less the accumulated depreciation of RM1.2 million since the
revaluation. The surplus on the revaluation reserve was related entirely to the plant.
No other disposals of non-current assets were made during the year. Plant acquired
under hire purchase during the year was RM2.0 million.
(b) Discuss the benefits of presenting the cash flow information.
Transcribed Image Text:Question 1
The following financial statements relate to GoGo Sdn Bhd.
Statement of Financial Position as at 31 December:
Property, plant and equipment [note (ii)
Current assets
Inventories
Trade receivables
Prepayments
Cash and bank
Total assets
Equity and liabilities
Share capital
Revaluation reserve [note (ii)
Retained earnings
Non-current liabilities
Hire purchase creditors [note (ii)
3% debentures
5% debentures
Deferred tax
Current liabilities
Bank overdraft
Trade payables
Hire purchase creditors [note (ii)
Current tax payable
Total equity and liabilities
2022
RM'000 RM'000
11,600
1,650
3,100
1,500
1.850 8,100
19,700
2,000
800
200
6,150
7,000
2,550
9,550
3,000
900
100 7.150
19,700
2021
RM'000 RM'000
16,800
1,650
2,600
1,200
1,700
4,000
500
550
4,050
5,450
22,250
7,000
1,600
850
9,450
6,200
800
1,200 6,600
22,250
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