The following are the financial statements and extracts of notes of Bunga Tanjung Bhd. Bunga Tanjung Bhd Statement of Profit or Loss For the year ended 31 December 2019 RM’000 RM’000 Turnover 20,000 Cost of sales 8,000 12,000 Distribution expenses 2,000 Administrative expenses 1,000 Other operating expenses 1,600 4,600 7,400 Interest expense 500 6,900 Gain on disposal of long-term investment 600 Dividend income 200 Interest income 100 900 7,800 Income tax 2,200 Net profit 5,600Bunga Tanjung Bhd Statement of Financial Position at 31 December 2019 31.12.2018 31.12.2019 RM’000 Non-current assets RM’000 18,000 Property, plant and equipment 30,000 1,800 Intangible assets 1,500 3,500 investments 5,000 23,300 36,500 Current assets 400 Inventories 500 1,600 Trade receivables 1,500 350 Investment 600 30 Interest receivables 20 nil Tax recoverable 20 70 Cash at bank 230 2,450 2,870 25,750 Total assets 39,370 Equities and reserves 13,200 Share capital 17,700 6,700 Reserves 10,270 Non-current liabilities 1,190 Finance lease liability 1,500 2,000 12% bonds 5,000 700 Deferred tax 1,500 200 Employee retirement benefits 900 23,990 36,870 Current liabilities 850 Trade payables 700 50 Interest payables 100 300 Bank loans 800 150 Overdraft 400 400 Finance lease creditors 500 10 Tax payable nil 25,750 39,3Bunga Tanjung Bhd Statement of Changes in Equity For the year ended 31 December 2019 Ordinary Shares Revaluation Reserves Retained Earnings Total RM’000 RM’000 RM’000 RM’000 Balance 1 Jan 2019 13,200 1,000 5,700 19,900 Surplus on revaluation of property 1,500 1,500 Issue of shares 4,500 4,500 Net profit 5,600 5,600 Dividends paid (3,530) (3,530) Balance 31 Dec 2019 17,700 2,500 7,770 27,970.Additional information: 1. Short-term investments were all disposed of within 50 days of purchase. 2. Detailed information of property, plant and equipment is as follows: RM’000 Opening balance 18,000 Revaluation surplus 1,500 Depreciation charge for the year (1,200) Disposal of plant (carrying amount) (2,000) Acquisition 13,700 Closing balance 30,000 The plant was disposed of at a loss of RM700,000. Plant acquired through finance lease was RM2.5 million. 3. Intangibles are all research and development costs. No new development costs were capitalised during this year. 4. Long-term investments of carrying amount RM1 million was disposed of at a profit.5. Other operating expenses include: RM’000 Amortisation of research and development 300 Gain on disposal of long-term investment (600) Loss on disposal of plant 700 Loss on disposal of short-term investments 200 Other operating expenses (all cash) 400 6. No retirement benefits were paid in 2019.