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.