National Foods Pvt. Ltd. is a company producing canned foods. Below are the comp
ID: 2339597 • Letter: N
Question
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 Hasniza Foods Pte. Ltd. for the year ended 31 August 2018 using the direct method. (Show all calculations).
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
Explanation / Answer
STATEMENT OF CASH FLOWS (DIRECT METHOD) Cash flows from operating activities: Receipts from customers 2850000 Payment for purchases -870000 Payment for operating expenses (31500+195000+150000-33000) -343500 Interest paid -135000 Income tax paid -240000 Net cash from operating activities 1261500 Cash flows from investing activities: Purchase of van -300000 Net cash used by investing activities -300000 Cash flows from financing activities: Loan taken 150000 Dividends paid -750000 Net cash from financing activities -600000 Increase in caah and cash equivalents 361500 Beginning balance of cash and cash equivalents 825000 Ending balance of cash and cash equivalents 1186500 WORKINGS: Receipts from customers: Net sales 2700000 Add: Beginning balance of accounts receivable 300000 Less: Ending balance of accounts receivable 150000 Receipts from customers 2850000 Payment for purchases: Cost of goods sold 900000 Add: Beginning balance of creditors 90000 Less: Ending balance of accounts payable 135000 855000 Add: Ending balance of inventory 90000 Less: Beginning balance of inventory 75000 Payment for purchases 870000 Dividend paid: Beginning balance of retained earnings 600000 Add: Net income for the year 1050000 Total 1650000 Less: Ending balance of retained earnings 900000 Dividend paid 750000
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