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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)
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 | ||
Notes to the Financial Statements | ||||
1. Fixed Assets | Land & buildings | Vehicles | Equipment | Total |
Carrying value at beginning of year | 2,700,000 | 0 | Z | 5,000,000 |
Cost | 2,700,000 | 0 | Z | Z |
Accumulated depreciation | 0 | 0 | 800,000 | Z |
Movements: | ||||
Additions at cost | 0 | Z | 350,000 | 0 |
Depreciation for the year | 0 | 0 | (200,000) | (200,000) |
Disposals at carrying value | 0 | 0 | 0 | Z |
Carrying value at end of year | 2,100,000 | Z | Z | 7,000,000 |
Cost | 2,100,000 | Z | Z | Z |
Accumulated depreciation | 0 | 0 | Z | Z |
A portion of the land and buildings were sold at book value. The vehicles were purchased on the last day of the accounting period and all the depreciation relates to equipment. | ||||
2. Cash and Cash Equivalents | 2022 | 2021 | ||
Bank | 48,000 | 80,000 | ||
Cash float | 2,000 | 0 | ||
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 | ||||
2.3 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. |
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