Established in 2002 by the visionary sisters, Guga and Othandayo Dube, Sidvokodvo Enviro Services CC, was born out of a deep-rooted expertise in the mining sector. With a cumulative experience spanning five decades, the Dube siblings sought to leverage their profound knowledge in the face of rapidly expanding infrastructure projects nationwide. Recognising a niche, they strategically positioned the company to offer specialised environmental consultancy services tailored to the mining and rail sectors. As the nation underwent significant infrastructural growth, Sidvokodvo Enviro Services CC emerged as a frontrunner in ensuring eco-friendly and sustainable practices in these pivotal industries.

The following information pertains to Sidvokodvo Enviro Services CC.

Extract of balances from the statement of financial position information as at 28 February 2023:

	2023	2022
	R	R
SARS (income tax) liability	71,500	49,500
Trade payables control	72,900	70,300
Accrued expenses (telephone)	20,500	15,100
Distribution to members payable	46,700	42,000
Mortgage loan - Hlane Merchant Bank	102,900	148,100
Trade receivables control	123,800	113,200
Listed investments carried at fair value	173,500	23,400
Inventory	95,600	84,500
Cash and cash equivalents	20,300	35,800
Dividends receivable	31,800	26,400
Prepaid IT expenses	11,500	17,500
Members contribution: Guga	348,900	286,200
Members contribution: Othandayo	287,300	272,600
Retained earnings	62,900	51,300
Office furniture at carrying amount	20,000	-
Computer equipment at carrying amount	267,400	254,700
Land and buildings at cost	627,600	466,900
Revaluation surplus on land and buildings	91,600	70,100

Extract of items disclosed in the statement of profit or loss and other comprehensive income for the year ended 28 February 2023:

	R
Profit on sale of equipment	12,600
Investment income: Dividends income	26,400
Profit on sale of land	79,400
Telephone expense	114,900
Fair value loss on listed investments	9,000
IT expense	16,800
Other admin and operating expenses	207,600
Revenue	1,152,500
Cost of sales	550,700
Depreciation for the year	21,500
Income tax expense	81,800

2. Additional information

2.1 The cash and cash equivalents is made up of:

2023 2022

Bank balances R15 300 R27 200

Petty cash R5 000 R8 600

2.2. The following pertains to property, plant and equipment:

2.2.1 In the financial year, computer equipment instrumental for environmental assessments was sold, with a carrying amount of R43 000. To maintain their cutting-edge services, the CC acquired the latest version of this equipment. This transaction has been accurately recorded.

2.2.2 Last year, a parcel of land, initially purchased for R202 000 as a potential site for environmental studies related to mining and rail projects, was sold during the current financial year. In alignment with the CC's accounting principles, the land doesn't is not depreciated. A new semi-prepared land, primed for further environmental consultancy projects, was acquired during the year.

2.2.3 All acquisitions of property, plant, and equipment were in line with the need for upgrading existing resources, and payments were promptly settled in full.

2.3. The members collectively agreed to distribute earnings, with each member to receive a sum of R25 400 from the profits garnered through their environmental consultancy endeavors in the mining and rail sectors.

2.4 The interest expense on the Mortgage loan amounted to R13 300 and was added in the other admin and operating expenses.

2.5. On 28 February 2023, Othandayo contributed office furniture valued at R20 000 to the business for use at the new offices. This was correctly credited to the members contributions account.

Which of the following alternatives represents the correct amount that must be disclosed as CASH RECEIPTS FROM CUSTOMERS in the cash generated from operations section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a. 1,163,100

b. 1,152,500

c. 1,141,900

d. 1,152,000

Q 31

Which of the following alternatives represents the correct amount that must be disclosed as income tax paid in the cash flows from operating activities section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a. 22,000

b. (22,000)

c. (59,800)

d. 59,800

Q 32

Which of the following alternatives represents the correct amount that must be disclosed as ACQUISITION OF LISTED INVESTMENTS in the cash flows from operating activities section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a. (159,100)

b. (150,100)

c. 159,100

d. 150,100

Q 33

Which of the following alternatives represents the correct amount that must be disclosed as ADDITION/REPLACEMENT OF COMPUTER EQUIPMENt under investment in property, plant and equipment to maintain operating capacity in the cash flows from investing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a. 77,200

b. (77,200)

c. 0

d. (120,200)

Q 34

Which of the following statements is CORRECT relating to preparation of statement of cash flows?

a. Statement of cash flows is prepared according to the accrual basis of accounting.

b. Statement of cash flows must only be prepared using the indirect method.

c. Statement of cash flows is prepared according to cash basis of accounting.

d. 4 Statement of cash flows shows only the investing activities of a business.

e. Partnerships are not allowed to prepare a statement of cash flows.

Q 35

Assume the correct cash purchases amount is R350 000. Which of the following alternatives represents the correct amount that must be disclosed as CASH PAID TO SUPPLIERS AND EMPLOYEES in the cash flows from operating activities section according to direct method in the statement of cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.(336,000)

b.(347,400)

c.(727,000)

d.(738,400)

Q 36

Which of the following alternatives represents the correct amount of cash purchases in the cash generated from operations section in the statement of cash flows for Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.(550,700)

b.(561,800)

c.(370,600)

d.(370,000)

Q 37

Which of the following alternatives represents the correct amount that must be disclosed as addition/replacement of computer equipment under investment in property, plant and equipment to expand operating capacity in the cash flows from investing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.77,200

b.0

c.(120,200)

d.(77,200)

Q 38

Which of the following alternatives represents the correct amount that must be disclosed as addition/replacement of land and buildings under investment in property plant and equipment to maintain operating capacity in the cash flows from investing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.160,700

b.(341,200)

c.341,200

d.(160,700)

Q 39

Which of the following alternatives represents the correct amount that must be disclosed as PROCEEDS FROM SALE OF LAND AND BUILDINGS in the cash flows from investing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.(122,600)

b.(281,400)

c.281,400

d.122,600

Q 40

Which of the following alternatives represents the correct amount that must be disclosed as PROCEEDS FROM SALE OF COMPUTER EQUIPMENT in the cash flows from investing activities in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.30,400

b.(30,400)

c.55,600

d.(55,600)

Q 41

Which of the following alternatives represents the correct amount that must be disclosed as PROCEEDS FROM MEMBERS CONTRIBUTIONS in the financing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.14,700

b.77400

c.57,400

d.62,700

Q 42

Which of the following alternatives represents the correct amount that must be disclosed as REPAYMENT OF LONG-TERM LOANS in the financing activities section in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.(45,200)

b.(57,400)

c.57,400

d.45,200

Q 43

Which of the following alternatives represents the correct amount that must be disclosed as INTEREST PAID in the cash generated from operations section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.13,300

b.(13,300)

c.(13,030)

d.13,030

Q 44

Which of the following alternatives represents the correct amount that must be disclosed as DIVIDENDS RECEIVED in the cash flows from operating activities section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a(21,000)

b.5,400

c.(5,400)

d.21,000

Q 45

Which of the following alternatives represents the correct amount that must be disclosed as distributions to members paid in the cash flows from operating activities section according to direct method in the statement cash flows of Sidvokodvo Enviro Services CC for the year ended 28 February 2023?

a.20,700

b.(46,100)

c.46,100

d.(20,700)

Q 46

Which of the following statements is INCORRECT relating to preparation of statement of cash flows?

a.Interest paid is a separately disclosable item.

b.Loss on sale of equipment is a non-cash item.

c.Depreciation is a non-cash item.

d.Capitalization share issue is regarded as a cash item.

e.Dividends received is a separately disclosable item.