Information: AJ Limited Statement of Comprehensive Income for the year ended 30 June 2022 Sales 10,000,000 Directors remuneration (1,400,000) Bad debts (100,000) Audit fees (130,000) Depreciation (200,000) Operating profit 1,700,000 Interest expense (170,000) Net profit before tax 1,530,000 Income tax (610,000) Net income after tax 920,000 AJ Limited Statement of Financial Position as at 30 June 2022 2022 2021 Assets Non-current assets 7,150,000 5,120,000 Fixed assets (Note 1) 7,000,000 5,000,000 Shares in AM (Pty) Ltd 150,000 120,000 Current assets 2,140,000 2,380,000 Inventories 1,300,000 1,100,000 Trade and other receivables 790,000 1,200,000 Cash and cash equivalents 50,000 80,000 Total Assets 9,290,000 7,500,000

Shareholders Equity and Liabilities Ordinary shareholders equity 6,670,000 5,150,000 Ordinary share capital (issued @ R5.00) 5,000,000 4,000,000 Share premium 800,000 600,000 Retained income 870,000 550,000 Non-current liabilities 1,440,000 1,160,000 Loan from AF Limited 1,440,000 1,160,000 Current liabilities 1,180,000 1,190,000 Creditors 1,180,000 1,190,000 Total Equity and Liabilities 9,290,000 7,500,000

2. Cash and Cash Equivalents 2022 2021 Bank 48,000

80,000 Cash float 2,000 -

50,000

80,000 3. Retained Income 2022 2021 Retained income at beginning of year 550,000

600,000 Net profit after tax 920,000

450,000 Dividends paid and declared (600,000)

(500,000) Retained income at end of year 870,000

550,000 4. Trade and Other Payables Trade creditors 688,000

738,000 Expenses payable (Interest on loan*) 30,000

50,000 SARS (Income tax) 62,000

94,000 Shareholders for dividends 400,000

308,000

1,180,000

1,190,000 * Interest on loan is not capitalised

2.1. Fill in the missing figures in the note to the Statement of financial position for Fixed assets.

2.2 Prepare the Cash Flow Statement for the year ended 30 June 2022

2.3 The business bought a significant amount of new fixed assets. What did they buy and how did they pay for these fixed assets? Provide figures to support your answer.