Question
1.Extract from the Statement of Comprehensive Income Depreciation 16 000 Interest expense 18 000 Income tax for the year 15 000 Net profit after tax
1.Extract from the Statement of Comprehensive Income
Depreciation
16 000
Interest expense
18 000
Income tax for the year
15 000
Net profit after tax
26 100
2.Extract from Statement of Financial Position
30 April 2020
30 April 2019
Tangible assets at carrying value
310 000
220 000
Inventories
50 000
35 000
Trade debtors
60 000
65 000
Cash on hand
3 000
15 000
Bank overdraft
32 000
0
Prepaid expense (Interest on loan)
2 000
1 000
Ordinary share capital
160 000
100 000
Share premium
45 000
30 000
Retained income
81 000
75 000
Loan from Pinetown Bank
58 000
49 000
Trade creditors
45 000
59 000
Shareholders for dividends
12 000
9 000
SARS - income tax
(Receivable) 8 000
(Payable) 14 000
3.Additional information
A.Some fixed assets were sold for R37000 cash at carrying value and additional fixed assets were purchased during the year.
B.Interim dividends at R8100 was declared and paid on 31 October 2019.
C.Final dividends were declared on 30 April 2020 and will be paid on 19 May 2020.
Required:
3.1Prepare the following:
3.1.1Compile the note for reconciliation between profit before taxation and cash generated from operations.(12)
3.1.2Prepare the cash flow statement for the year ended 30 April 2020.All workings must be shown in brackets to earn part-marks.(
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
