Tutorial 11

Question 1
National Foods Pvt. Ltd. is a company producing canned foods. Below are the company’s financial
statements:
National Foods Pvt. Ltd.
Statement of Comprehensive Income for the year ended 31 August 2018
RM
Sales revenue 2,700,000
Cost of goods sold (900,000)

Gross profit 1800,000

Operating Expenses
Administration & Distribution expenses (195,000)
Depreciation expense (30,000)
Other operating expense (150,000)
Interest expense (135,000)

Net profit before tax 1,290,000

Income tax expense (240,000)

Net income 1,050,000

National Foods Pvt. Ltd.

Statement of Financial Position as at 31 August 2018
2017 2018
RM RM RM RM
Non-current Assets
Van 600,000 900,000
(-) Accumulated depreciation (120,000) 480,000 (150,000) 750,000
Current Assets  
Bank 825,000 1,186,500
Debtors 300,000 150,000
Inventory 75,000 90,000
Total Assets 1,680,000 2,176,500

Non-current Liabilities
Loan 480,000 630,000
Current Liabilities
Creditors 90,000 135,000
Operating expenses payable 31,500 33,000
 Shareholders’ Equity
Ordinary share capital 478,500 478,500
Retained earnings 600,000 900,000
Total Liabilities & Equities  1,680,000 2,176,500

Required:
Prepare the statement of cash flows for National Foods Pte. Ltd. for the year ended 31 August 2018 using
the direct method. (Show all calculations).
Question 2
The financial statement of Shaaz Ltd is given below:
Shaaz Ltd.
Statement of Comprehensive Income for year ended 31 Dec 2019
RM
Sales revenue 300,000
Cost of goods sold (180,000)

Gross profit 120,000

Operating Expenses
Advertising expenses (9,000)
Depreciation expense (16,000)
Other operating expense (6,000)
Interest expense (6,000)

Net profit before tax 83,000

Income tax expense (22,000)

Net income 61,000

Shaaz Ltd.
Statement of Financial Position as at 31 December
2018 2019
RM RM RM RM
Non-current Assets
Plant & Machinery 160,000 240,000
(-) Accumulated depreciation (32,000) 128,000 (48,000) 192,000
Current Assets  
Cash at Bank 32,000 48,000
Account receivables 70,000 30,000
Inventory 20,000 30,000
Total Assets 250,000 300,000

Non-current Liabilities
 Loan 100,000 95,000
Current Liabilities
Trade payables 15,000 19,000
Advertising expense payable 4,000 6,000

Shareholders’ Equity
Ordinary share capital 100,000 90,000
Retained earnings 31,000 90,000
Total Liabilities & Equities  250,000 300,000

Required:
Prepare the statement of cash flows for Shaaz Ltd. for the year ended 31 December 2019 using the direct
method. (Show all calculations).