PivotalFlow Bhd is in the midst of preparing its financial statements for the year ending 31 December 2020. It has completed the comparative Statement of Financial Position and Statement of Profit or Loss as follows: The following information is available: 1. Plant, machinery and equipment (PPE) were purchased during the year at a cost of RM23 million. The assets revaluation reserves relate to revaluation of PPE. 2. An equipment with a carrying value of RM6.9 million was disposed at a loss of RM1.1 million. The buyer of the equipment will pay the balance of RM1.4 million in January 2021, which is included in the trade receivables. 3. Included in operating expenses was RM500,000 impairment loss of intangible assets charge for the year. Amortisation of intangible assets for the year was RM150,000 and gain on disposal of a patent was RM1.6 million. All these were included in operating expenses 4. In May 2020, a bonus issue of 1 for every 10 shares held, at RM1.60 each has utilised the retained earnings. The number of shares in issue at the beginning of the year was 10 million. Required: (a) Prepare a Statement of Cash Flows for the year ended 31 December 2020 for PivotalFlow Bhd in accordance with MFRS 107 Statement of Cash Flows using direct method of presenting cash flows from operating activities.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PivotalFlow Bhd is in the midst of preparing its financial statements for the year ending 31 December 2020. It has completed the comparative Statement of Financial Position and Statement of Profit or Loss as follows:

The following information is available:
1. Plant, machinery and equipment (PPE) were purchased during the year at a cost of RM23 million. The assets revaluation reserves relate to revaluation of PPE.
2. An equipment with a carrying value of RM6.9 million was disposed at a loss of RM1.1 million. The buyer of the equipment will pay the balance of RM1.4 million in January 2021, which is included in the trade receivables.
3. Included in operating expenses was RM500,000 impairment loss of intangible assets charge for the year. Amortisation of intangible assets for the year was RM150,000 and gain on disposal of a patent was RM1.6 million. All these were included in operating expenses
4. In May 2020, a bonus issue of 1 for every 10 shares held, at RM1.60 each has utilised the retained earnings. The number of shares in issue at the beginning of the year was 10 million.

Required:
(a) Prepare a Statement of Cash Flows for the year ended 31 December 2020 for PivotalFlow Bhd in accordance with MFRS 107 Statement of Cash Flows using direct method of presenting cash flows from operating activities.

PivotalFlow Bhd
Statement of Profit or Loss for the year ended 31 December 2020
RM000
Revenue
52,000
(36,800)
15,200
Cost of sales
Gross profit
Operating expenses
(9.377)
Interest income
50
(420)
5,453
Finance costs
Profit for the year
(1,309)
4,144
Taxation
Profit after tax

RM000
RM000
Assets
Non-current Assets
Property, plant and equipment
Intangible assets
30,900
13,100
1,000
31,900
2,500
15,600
Total non-current assets
Current Assets
Inventories
2,030
3,900
1,690
3,700
Trade receivables
Accrued interest income
60
80
Short term investment (matured less than 3 months)
1,500
1,200
6,800
Cash
710
Total current assets
8,200
Total Assets
40,100
22,400
Equity and Liabilities
Equity
Share capital
20,000
12,000
Asset revaluation reserves
5,500
500
Retained earnings
Total equity
5,700
31,200
3,200
15,700
Non-current Liabilities
10% Bank loan
2,100
4,200
Current Liabilities
Trade payables
Тах рayable
4,730
1,600
900
870
1,200
8,900
40,100
Bank overdraft
Total liabilities
6,700
Total Equities and Liabilities
22,400

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