ACC303: BUSINESS ACCOUNTING

PKP 6: CASH FLOW STATEMENTS – INDIRECT METHOD

NAME:

QUESTION 1

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

PickUp Bhd
Statements of Financial Position as at 30 June

2018 2017
RM RM
Ordinary Shares 5,000,000 5,700,000
Retained profit 3,893,000 3,200,000
Asset Revaluation Reserve 1,700,000 2,500,000
Bank loan 500,000 600,000
Accounts Payable 185,000 225,000
Tax Payable 190,000 285,000
Accruals 120,000 105,000
Dividend payable 85,000 45,000
11,673,000 12,660,000

Property, plant and 6,620,000 7,300,000

equipment
Less:
(1,470,000)
Accumulated depreciation (1,950,000)
Investment Properties 1,500,000 1,800,000
Development cost 1,680,000 1,850,000
Accounts Receivable 195,000 120,000
Inventories 380,000 445,000
Short-term deposits 710,000 645,000
Bank 2,538,000 1,970,000
11,673,000 12,660,000
Additional information:
1. The movement in ordinary shares was partly due to bonus share of RM300,000 out of profit.
The balance was due to share buyback.

2. During the year, the company paid interim dividend RM650,000 together with last year
dividend.

3. Property, plant and equipment was decreased due to deficit from revaluation of land and
dispose of new machine. The company also disposed an old machine costing RM1,550,000
and accumulated depreciation of RM800,000, for a cash RM80,000. The company also
acquired a new machine and a motor vehicle during the year.
4. The decrease in investment properties was due to disposal at cost. Whereas, the decrease
in the development cost is because of amortization expense.

5. Tax charged for the year is amounting RM1,250,000.

6. Short-term deposits qualified for cash equivalent. Interest income from short-term deposits
is RM200,000.

Required:

Prepare a Statement of Cash Flows for the year ended 30 June 2018 for PickUp Bhd using the
indirect 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
Net Profit Before Tax
Adjustments:

Operating Profit Before Working

Capital Changes

Cash Generated From Operation

Net Cash inflow from operating

activities
CASH FLOW FROM INVESTING
ACTIVITIES

Net Cash Inflow From Investing

Activities
CASH FLOW FROM FINANCING
ACTIVITIES

Net Cash Inflow From Financing

Activities
Net decrease in cash and cash
equivalent
Cash and Cash equivalent, at the
beginning
Cash and Cash equivalent, at the
ending