Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please urgently help me with this homework? Thank you Question 10.9. The Inexperienced bookkeeper of Indaba Ltd was in the process of drafting
Can you please urgently help me with this homework? Thank you
Question 10.9. The Inexperienced bookkeeper of Indaba Ltd was in the process of drafting a statement of cash flows. The following extracts from the statement of financial position and additional information were available on their financial year-end, 31 October 2018 REQUIRED Prepare the statement of cash flows of Indaba Ltd for the year ended 31 October 20.18. INFORMATION Indaba Ltd Statement of financial position as at 31 October 20.18 Notes 20.18 R 20.17 R ASSETS Non-current assets Property, plant and equipment 2 2471 250 2 393 750 Current assets Debtors Inventory 190877 11 900 178977 2662 127 204 950 16 950 188 000 2598 700 EQUITY AND LIABILITIES Equity Ordinary share capital Preference share capital Retained earnings 2 349 000 1 660 000 100 000 589 000 1948 188 1 260 000 150 000 538 188 Current liabilities Trade and other payables Shareholders for dividends Interest expense payable Income tax payable Bank overdraft 313 127 140 000 7770 2000 8 000 155 357 2662 127 649 512 120 000 18 500 10000 5000 497012 2 598 700 Indaba Ltd Notes for the year ended 31 October 20.18 2. Property, plant and equipment Land R 1 500 000 1 500 000 Buildings Equipment R 384 000 509 750 400 000 550 000 (16000) (41 250) Carrying amount - 31 October 2017 Cost Accumulated depreciation Movements during the year Additions Disposals Depreciation 200 000 (8000) 31000) (82.500) Carrying amount - 31 October 20.18 Cost Accumulated depreciation 1 700 000 1 700 000 376000 400 000 124000) 395 250 S10 000 (114750) Extracts from the statement of comprehensive income for the year ended 31 October 20.18 Gross profit Profit on sale of equipment Depreciation Dividend income on investment Finance cost Profit before tax R 320 000 4000 ? 13 000 25 000 82 510 1. 2. Additional information Cash received from clients has been calculated as R1 607 000. A constant profit mark-up of 25% on cost is maintained. 3. Dividends of R7 770 were declared for the year. 4. Trade and other payables on 31 October 20.18 and 20.17 represented trade creditors only. 5. Income tax expense for the year amounted to R23 928. Equipment with a cost price of R40 000 was sold. Depreciation on the disposed equipment was recorded correctly. No other assets were disposed of during the financial year. 6. Question 10.9. The Inexperienced bookkeeper of Indaba Ltd was in the process of drafting a statement of cash flows. The following extracts from the statement of financial position and additional information were available on their financial year-end, 31 October 2018 REQUIRED Prepare the statement of cash flows of Indaba Ltd for the year ended 31 October 20.18. INFORMATION Indaba Ltd Statement of financial position as at 31 October 20.18 Notes 20.18 R 20.17 R ASSETS Non-current assets Property, plant and equipment 2 2471 250 2 393 750 Current assets Debtors Inventory 190877 11 900 178977 2662 127 204 950 16 950 188 000 2598 700 EQUITY AND LIABILITIES Equity Ordinary share capital Preference share capital Retained earnings 2 349 000 1 660 000 100 000 589 000 1948 188 1 260 000 150 000 538 188 Current liabilities Trade and other payables Shareholders for dividends Interest expense payable Income tax payable Bank overdraft 313 127 140 000 7770 2000 8 000 155 357 2662 127 649 512 120 000 18 500 10000 5000 497012 2 598 700 Indaba Ltd Notes for the year ended 31 October 20.18 2. Property, plant and equipment Land R 1 500 000 1 500 000 Buildings Equipment R 384 000 509 750 400 000 550 000 (16000) (41 250) Carrying amount - 31 October 2017 Cost Accumulated depreciation Movements during the year Additions Disposals Depreciation 200 000 (8000) 31000) (82.500) Carrying amount - 31 October 20.18 Cost Accumulated depreciation 1 700 000 1 700 000 376000 400 000 124000) 395 250 S10 000 (114750) Extracts from the statement of comprehensive income for the year ended 31 October 20.18 Gross profit Profit on sale of equipment Depreciation Dividend income on investment Finance cost Profit before tax R 320 000 4000 ? 13 000 25 000 82 510 1. 2. Additional information Cash received from clients has been calculated as R1 607 000. A constant profit mark-up of 25% on cost is maintained. 3. Dividends of R7 770 were declared for the year. 4. Trade and other payables on 31 October 20.18 and 20.17 represented trade creditors only. 5. Income tax expense for the year amounted to R23 928. Equipment with a cost price of R40 000 was sold. Depreciation on the disposed equipment was recorded correctly. No other assets were disposed of during the financial year. 6 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