Answer Happy

QUESTION 2 (30 Marks) The consolidated accounts of the Redang Bhd group for the year ended 31 March 2022 is as follows. Group Statement of Financial Position for the years ended 31 March 2022 2022 2021 RM'000 RM 000 Property, Plant & Equipment 3,000 900 Investment Properties 1,000 1,000 Investment in associated companies 700 Goodwil on consolidation 1,000 Current Assets Inventory 2,000 1,700 Trade & Other Receivables 3,000 4,550 Deferred Tax Asset 500 Cash & Cash Equivalent 2,200 550 13,400 8,700 Share Capital & Reserves Ordinary shares of RM1 each 6,200 3,000 5% Debentures 1,000 800 Retained profits 2,260 900 9,460 4,700 Non-Controlling Interest 600 550 Current Liabilities Other Payables 600 300 Income Tax Payable 400 400 Employee Benefits 300 300 Deferred Tax Liability 800 100 Trade Creditors 1,240 2,350 13,400 8,700

Consolidated Statement of Comprehensive Income for the year ended 31 March 2022 RM000 Turnover 12,000 Cost of Sales (4,130) 7,870 Distribution expenses (450) Marketing expenses (880) Administration expenses (2,345) Operating profit 4,195 Finance costs (50) Share of profits of associated companies 100 Profit before tax 4,245 Tax (700) Profit after tax 3,545 Profit after tax attributable to: Equity holders of parent 2,600 Non-Controlling Interest 945 3,545 Additional Information: i) Dividend paid and declared by Redang Bhd during the year amounted to 20 sen per share. ii) Included in the consolidated operating expenses are loss on disposal of fixed assets of RM100,000 and depreciation of RM350,000, iii) On 1 April 2021, Redang Bhd acquired a 90% interest in a company called Tioman Bhd for a consideration of RM3 million. The consideration was discharged by issuing 3,000,000 ordinary shares in Redang Bhd at RMI. The fair value of the net assets of Tioman Bhd at date of acquisition were as follows: RM'000 Office Equipment 1,000 Raw Material Stocks 600 Trade Receivables 550 Bank 500 Trade Payables iv) Redang Bhd acquired a 45% interest in a company called Sipadan Bhd on 1 April 2021 by payment of cash of RM600,000. v) On 31 March 2022 machinery with a net book value of RM700,000 was sold for RM600,000 cash. (450) Required: Prepare the consolidated cash flow statement for the year ended 31 March 2022 using the indirect method.