QUESTION 3 Income statement for the year ended 31 December 2021 and the balance sheet as at 31 December 2020 and 2021 of Timah Berhad are as follows: TIMAH BERHAD Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2021 RM Sales RM 623,000 353,000 Cost of Sales Gross Profit 270.000 Other Expenses (101,000) 169.000 Other Operating Income 13,000 182,000 Interest Revenue and Similar Income 4,000 186,000 Interest Expense and Similar Charges (16,000) 170,000 Tax on Profit (35,000) 135.000 Profit after Taxation Retained Profit b/f 53,000 188,000 (40,000) Transfer to General Reserve Dividend on Ordinary Shares Retained Profit c/f (60,000) (100,000) 88.000 I TIMAH BERHAD Statement of Financial Position as at 31 December 2020 2021 RM RM Non-Current Assets Intangible assets: 37,000 32,000 Patents and trademarks Tangible assets: Land and buildings Plant and machinery at NBV 310,000 310,000 125,000 102,000 163,000 180,000 635,000 624,000 Fixtures, fittings, tools and equipment at cost Current Assets Inventory 41,000 35,000 Debtors Trade debtors 123,000 132,000 Prepayments and accrued income 16,000 13,000 Cash at bank and in hand 17,000 5,000 197,000 185,000 809,000 Total Assets 832.000 Current Liabilities Bank overdraft 0 16,000 Trade creditors 39,000 30,000 Income tax payable 46,000 35,000 50,000 60,000 Dividend payable Accrued expenses 15,000 11,000 150,000 152,000 Non-Current Liabilities Debenture loans 250,000 150,000 240,000 300,000 Shareholders' Equity Paid-up share capital Asset revaluation reserve Reserves 69,000 9,000 70,000 110,000 Retained profits 53,000 88,000 432,000 507,000 Total liabilities and shareholders' equity 832,000 809,000 Additional information: 1. Depreciation of plant and machinery for the year 2021 is RM23,000, included in Other Expenses. 2. No fixed assets were disposed throughout the year. The company paid all 2020's dividend due to its shareholders. 4. The company increased its paid-up share capital to RM300,000 by utilising the asset revaluation reserve. Required: Prepare a statement of cash flows using the indirect method.