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QUESTION 1 The comparative statement of financial position of Jana Solar Sdn. Bhd. at 31 December 2020 reported the following: Jana Solar Sdn. Bhd. presented the following statement of profit or loss for the year ended 31 December 2020. RM Sales revenue 1,083,000 Cost of goods sold (585,000) Gross profit 498,000 Operating expenses (including depreciation, RM36,600) (429,450) 68,550 Loss on sale of equipment (2,100) Profit before tax 66,450 Tax expense (9,450) Profit for the year 57,000 List of assets, liabilities and equity at 31 December 2020 RM Equipment 278,250 Accumulated depreciation (108,750) Inventories 454,500 Prepaid expenses 17,100 Accounts receivable 74,100 Cash ? Ordinary share capital, no par value 483,000 Retained earnings 121,500 Long-term bank loan 112,500 Accounts payable 117,450 Short-term note payable 17,250 2019 RM 216,000 (93,000) 490,200 19,200 90,750 71,550 450,000 127,500 82,500 123,450 11,250 These transactions occurred during the year ended 31 December 2020: Retained earnings Long-term bank loan Accounts payable Short-term note payable 121,500 112,500 117,450 17,250 127,500 82,500 123,450 11,250 These transactions occurred during the year ended 31 December 2020: i) Sold equipment costing RM51,000 with an accumulated depreciation of RM20,850, for RM28,050. ii) Purchased equipment amounted to RM113,250 by paying RM38,250 in cash and by taking a long-term bank loan for the balance. iii) Borrowed RM6,000 cash by signing a short-term note payable. iv) Paid RM45,000 cash to reduce the long-term bank loan. v) Paid cash dividend of RM63,000. vi) The company issued 3,000 ordinary shares for RM11 cash per share. Required: 1. Prepare a Statement of Cash Flows of Jana Solar Berhad for the year ended 31 December 2020, using the indirect method. (20 marks) 2. Analyse and discuss the statement of cash flows prepared in part 1) above. (5 marks) ITotal. 25 marks

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