ACC303: BUSINESS ACCOUNTING

PKP 3: 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. The details of property, plant and equipment as at 30 June 2018:

Freehold Motor
property vehicle Machinery
Cost RM RM RM
Balance at 1 July 2017 350,000 84,000 175,000
Surplus 35,000 - -
New acquisition - 56,000 70,000
Disposal - - (28,000)
Balance at 30 June 2018 385,000 140,000 217,000
Accumulated depreciation
Balance at 1 July 2017 - 28,000 52,500
Disposal - - (12,600)
Charge for the year - 10,500 14,000
Balance at 30 June 2018 - 38,500 53,900
Carrying value 385,000 101,500 163,100
2. Other operating income is the gain of disposal of a machine that was disposed during the
year. All depreciation charges were treated as administration expenses.

3. All new acquisition of property, plant and equipment were purchased for cash.

4. Included in administration expense is bad debt expense 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