Page 103 - Ebook Financial Accounting 3

Indirect Method

Anggun Ltd
Statement of Cash Flow for the year ended 31 December 20X8

RM RM

Cash Flow from Operating Activities
Net profit before tax 34,000

Add: Non-cash items
Depreciation 35,000 69,000

Working capital changes
Increase in stock (14,500)

Increase in debtors (8,000)

Increase in creditors 2,000
Decrease in accrued expenses (2,000) (22,500)

Nett cash flow from operating activities 46,500

Cash Flow from Investing Activities

Acquisition of equipment (RM375,000 – (100,000)

RM275,000)
Acquisition of land (50,000)

Disposal/ Sales proceed of investment (RM50,000 + 60,000

RM10,000)
Nett cash flow from investing activities (90,000)

Cash flow from Financing Activities
Issuance of shares (RM337,000 – RM262,000) 75,000

Proposed Dividend (10,000)
Nett cash flow from financing activities 65,000

Nett cash inflow/outflow 21,500
Cash and Cash equivalents at the beginning 50,500

Cash and Cash equivalents at the end 72,000

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