Additional information:

Inventory is disclosed at cost$.$

Land has not been revalued in the current financial year

An extension was added to the building and completed in the current financial year. All

building costs were paid for in cash. Buildings are not depreciated.

Interest on the long term loan is not capitalised.

No equipment was sold during the current financial year. Some equipment was sold

during the year for cash.

Dividends for the year as shown in the statement of changes in equity was $R75000.$

Required:

Prepare the statement of cash flows of Blunt $($Pty$)$ Ltd for the year ended $31$ December $2021$

to comply with the International Financial Reporting Standards $($IFRS$)$ in as much as

possible. Use the indirect method. Comparative figures are not required.

END OF QUESTION PAPERQUESTION FOUR

$25$

Blunt $($Pty$)$ Ltd provided the following information that was extracted from the financial records for the year ended $31$ December $2021.$ Relevant financial information from the statement of profit and loss and other comprehensive income and the statement of financial position with comparative figures are shown below.

Extract of items shown on the statement of profit and loss and other comprehensive income for the year ended $31$ December $2021$: $R$

$\begin{array}{cc}\text{I}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}on\text{f}\text{i}\text{x}\text{e}\text{d}\text{d}\text{e}\text{p}\text{o}\text{s}\text{i}\text{t}& 30000\\ \text{D}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}& 38000\\ \text{L}\text{o}\text{s}\text{s}on\text{s}\text{a}\text{l}\text{e}of\text{e}\text{q}\text{u}\text{i}\text{p}\text{m}\text{e}\text{n}\text{t}& 1000\\ \text{I}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}on\text{l}\text{o}\text{n}\text{g}\text{t}\text{e}\text{r}\text{m}\text{b}\text{o}\text{r}\text{r}\text{o}\text{w}\text{i}\text{n}\text{g}\text{s}& 32000\\ \text{I}\text{n}\text{c}\text{o}\text{m}\text{e}\text{t}\text{a}\text{x}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}& 86000\\ \text{P}\text{r}\text{o}\text{f}\text{i}\text{t}\text{f}\text{o}\text{r}\text{t}\text{h}\text{e}\text{y}\text{e}\text{a}\text{r}& 141000\end{array}$

Information from the statement of financial position as at $31$ December:

$\backslash$table$[[,\backslash$table$[[2021],[$R$]],\backslash$table$[[2020],[$R$]]],[$Land and buildings at cost$,620000,520000],[$Equipment at carrying amount,$268000,343000],[\backslash$table$[[-$ Cost$],[-$ Accumulated depreciation$]],\backslash$table$[[354000],[(86000)]],\backslash$table$[[441000],[(98000)]]],[$Fixed deposits,$70000,100000],[$Inventory$,66000,100000],[$Debtors control,$64000,70000],[$Bank $-$ favourable $($debit$)$ balance,$86000,----],[$Prepaid expense $-$ Rent,$----,6000],[$Creditors control,$26000,48000],[$Bank overdraft $-$ credit balance,$-----,6000],[$SARS $-$ tax payable,$22000,18000],[$Shareholders $-$ dividends payable,$30000,75000],[$Interest payable,$10000,12000],[$Ordinary share capital,$850000,750000],[$Retained earnings,$96000,30000],[$Long term borrowings,$140000,200000]]$

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