ACC303: BUSINESS ACCOUNTING

PKP 4: CASH FLOW STATEMENTS – DIRECT METHOD

NAME:

QUESTION 1

Below is the financial statements of PickUp Bhd as at 30 June 2018.

PickUp Bhd
Statement of Profit or Loss and Other Comprehensive Income for the year ended
30 June 2018
RM
Sales 3,276,700
Cost of sales (1,015,000)
Gross profit 2,261,700
Other operating income 22,400
Administrative expenses (476,350)
Selling expenses (175,000)
Operating profit 1,632,750
Interest expense (61,600)
Dividend income 35,000
Profit before tax 1,606,150
Taxation (560,350)
Profit after tax 1,045,800
Other comprehensive income : -
Surplus on revaluation of building 35,000
Total Comprehensive Income 1,080,800

PickUp Bhd
Statement of Changes in Equity for the year ended 30 June 2018

Share Retained Revaluation

Capital Profit reserve
RM RM RM
Balance at 1 July 2017 1,400,000 784,000 245,000
Issue of shares 700,000
Bonus share 350,000 (350,000)
Surplus on revaluation 35,000
Profit after tax 1,045,800
Dividend paid (224,000)
Balance at 30 June 2018 2,450,000 1,255,800 280,000
 PickUp Bhd
Statements of Financial Position as at 30 June

2018 2017
RM RM
Non-current assets
Property, plant and equipment 649,600 528,500
Investment property 182,000 140,000
Development costs 126,000 84,000

Current assets
Inventories 84,350 63,000
Accounts receivable 52,850 58,800
Short term investment 1,057,000 1,134,000
Cash at bank 2,538,900 1,430,800
4,690,700 3,439,100
Share capital and reserves
Ordinary shares 2,450,000 1,400,000
Reserves 1,535,800 1,029,000

Non-current liabilities
Bank loan 560,000 840,000

Current liabilities
Accrued expenses 42,000 59,500
Accrued interest 10,500 17,500
Accounts payable 66,500 61,600
Tax payable 25,900 31,500
4,690,700 3,439,100

Additional information:

1. Other operating income is the gain of disposal of a machine that was disposed during the
year. The cost of the machine disposed is RM28,000 with accumulated depreciation of
RM12,600.
2. The increase in property, plant and equipment is due to acquisition and revaluation of
assets. All new acquisition of property, plant and equipment were purchased for cash.

3. All depreciation charges were treated as administration expenses.

4. Included in administration expense is increase in allowance of impairment of trade

receivable amounting RM30,000.

5. The increase in the share capital is due to issue of share to public and bonus share out of
profit.

6. Short term investments are to be considered as cash and cash equivalents.

Required:
Prepare a Statement of Cash Flows for the year ended 30 June 2018 for PickUp Bhd using the
direct method and in compliance with MFRS 107 Statement of Cash Flows.
 PickUp BHD
STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE 2018
RM RM
CASH FLOW FROM OPERATING
ACTIVITIES
Cash receipts from customers
Cash paid to suppliers
Cash paid to other expenses
Cash generated from operations
Interest paid
Tax paid
Net cash inflow from operating
activities
CASH FLOW FROM INVESTING
ACTIVITIES

Net cash outflow from investing

activities
CASH FLOW FROM FINANCING
ACTIVITIES

Net cash inflow from financing

activities
Net increase in cash and cash
equivalent
Cash and Cash equivalent, at the
beginning
Cash and Cash equivalent, at the
ending