(b) The following financial information is provided by Teleporter Sdn Bhd:
Balance Sheet as at 31 December 2005
2005 2004
Non-current assets RM’000 RM’000
Property 445 -
Plant and machinery 1,388 1,135
Less accumulated depreciation (307) (240)
1,081 895

Investment 347 338
Preliminary expenses __40 ¬¬__53
1,913
1,286
Current assets
Inventories 302 222
Trade receivables 95 151
Less provision for doubtful debts (6) (9)
Tax recoverable - 7
Bank 356 215
747
586

Current liabilities
Tax payable 4 -
Ordinary dividends payable 80 66
Trade payables 238 454
322
520

Net current assets 425 66
2,338 1,352
Financed by:
Non-current liabilities
Deferred tax liability 240 205
10% debentures 445 -

Shareholders’ equity
Ordinary share capital 800 667
Capital redemption reserve 133 -
Share premium 67 67
Retained earnings 483 280
General reserves 170 133
2,338
1,352


Additional information:
a. On July 1, 2005 RM445,000 10% debentures were issued to acquire property. Interest for the year has been paid.
b. Tax expense for 2005 was RM149,520, including transfer to deferred tax liability of RM35,000.
c. During 2005, the proposed dividends for 2004 were paid. Also, preference dividends (less tax of 28%) for the first half year of 2005 were paid.
d. Investment costing RM44,500 were realized at a loss of RM1,780. Dividends received amounted to RM14,400.
e. Plant and machinery costing RM44,500, with book value of RM26,700 were sold at a loss of RM3,560.

Required:

Prepare the Cash Flow Statement of Teleporter Sdn Bhd for the year ended 31 December 2005 using the indirect method (notes to the statement not required).

( i)how should i find the profit before tax?
( ii) how should i find the value of preference dividends? no preference shares are given in this question