Ntabazimbili Limited is a company in the business of logistics for dry commodities. The information below is present to you for the preparation of their statement of cash flows:

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

	2023	2022
	R	R
Share capital	682,300	607,800
Retained earnings	920,700	544,600
Revaluation reserve	154,600	109,600
Listed investment at fair value	270,500	219,000
Bank (Dr)	42,200	29,300
Interest payable	12,300	8,900
Machinery at cost	186,800	231,700
Accumulated depreciation: machinery	40,000	14,100
Land and buildings at cost	788,200	463,000
Trade debtors control	52,200	48,300
Current tax receivable	23,700	8,300
Dividends payable	10,100	16,000
Inventory	67,700	52,500
Loans to director	221,200	237,100
Trade creditors control	31,700	19,600
Interest receivable	-	7,100
Long-term borrowing	73,800	199,200
Dividends receivable	20,500	12,500

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

	R
Loss on sale of machinery	14,200
Interest expense	12,100
Depreciation (machinery)	72,300
Rental income	36,000
Gain on financial assets at fair value through profit or loss	44,400
Investment income: Dividend received	22,500
Income tax expense	361,400

Additional information:

1. Ntabazimbili Limited prepares the statement of cash flows using the indirect method.

2. The only item of property, plant and equipment which was sold for the year is machinery.

3. Loans advanced to the directors are immediately callable.

4. During this year under review, the sale or purchases of property, plant and equipment was in cash.

5. Dividends paid to the shareholders (in cash) during the year amounted to R72 300.

Which of the following alternatives represents the correct amount that must be disclosed as profit before tax in the cash generated from operations section according to indirect method in the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

376,100

b.

803,900

c.

442,000

d.

442,500

e.

309,700

Question 46

Which of the following alternatives represents the correct amount that must be disclosed as loans advanced to (received from) directors of the company in the cash flows from operating activities section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(19,500)

b.

(15,900)

c.

15,900

d.

19,500

e.

0

Question 47

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 of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(51,500)

b.

0

c.

7,100

d.

(7,100)

e.

51,500

Question 48

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 of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

346,000

b.

361,400

c.

(346,000)

d.

(361,400)

e.

(376,800)

Question 49

Which of the following alternatives represents the correct amount that must be disclosed as proceeds on sale of property, plant and equipment in the cash flows from investing activities section according to direct method in the statement cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

29,900

b.

(29,900)

c.

0

d.

(15,700)

e.

15,700

Question 50

Which of the following alternatives represents the correct amount of total non-cash items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(42,100)

b.

(10,400)

c.

10,400

d.

86,500

e.

42,100

Question 51

Which of the following alternatives represents the correct amount that must be disclosed as loans advanced to (received from) directors of the company in the cash flows from financing activities section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

19,500

b.

(19,500)

c.

(15,900)

d.

0

e.

15,900

Question 52

Which of the following alternatives represents the correct amount that must be disclosed as dividend received in the cash flows from operating activities section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

14,500

b.

22,500

c.

(14,500)

d.

(22,500)

e.

0

Question 53

Which of the following alternatives represents the correct amount that must be disclosed as proceeds from (repayment of) long-term loans in the cash flows from financing activities section according to direct method in the statement cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(95,000)

b.

(125,400)

c.

125,400

d.

95,000

e.

112,000

Question 54

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

a.

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

b.

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

c.

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

d.

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

e.

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

Question 55

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

a.

Dividends received is a separately disclosable item.

b.

Loss on sale of equipment is a non-cash item

c.

Depreciation is a non-cash item.

d.

Interest paid is a separately disclosable item.

e.

Capitalization share issue is regarded as a cash item.

Question 56

Which of the following alternatives represents the correct amount that must be disclosed as proceeds from issue of shares in the cash flows from financing activities section according to direct method in the statement cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

0

b.

(75,400)

c.

75,400

d.

74,500

e.

(74,500)

Question 57

Which of the following alternatives represents the correct amount that must be disclosed as dividend received in the cash flows from investing activities section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

22,500

b.

14,500

c.

(14,500)

d.

0

e.

(22,500)

Question 58

Which of the following alternatives represents the correct amount of total separately disclosable items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(10,400)

b.

86,500

c.

10,400

d.

(42,100)

e.

42,100

Question 59

Which of the following alternatives represents the correct amount that must be disclosed as interest paid in the cash flows from operating activities section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(11,200)

b.

12,100

c.

(12,100)

d.

8,700

e.

(8,700)

Question 60

Which of the following alternatives represents the correct amount that must be disclosed as increase (decrease) in trade receivables in the cash generated from operations section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(3,200)

b.

3,900

c.

3,000

d.

(3,900)

e.

3,200

Question 61

Which of the following alternatives represents the correct amount that must be disclosed as additions to property, plant and equipment under investment in property plant and equipment to expand operating capacity in the cash flows from investing activities section according to direct method in the statement cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

280,200

b.

(280,200)

c.

325,200

d.

(325,200)

e.

0

Question 62

Which of the following alternatives represents the correct amount that must be disclosed as increase (decrease) in trade payables in the cash generated from operations section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(12,100)

b.

3,200

c.

3,000

d.

12,100

e.

(3,200)

Question 63

Which of the following alternatives represents the correct amount that must be disclosed as proceeds from issue of shares in the cash flows from operating activities section according to direct method in the statement cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

0

b.

74,500

c.

75,400

d.

(75,400)

e.

(74,500)

Question 64

Which of the following alternatives represents the correct amount that must be disclosed as additions to property, plant and equipment under investment in property plant and equipment to maintain operating capacity in the cash flows from investing activities section according to direct method in the statement cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

0

b.

280,200

c.

(325,200)

d.

325,200

e.

(280,200)

Question 65

Which of the following alternatives represents the correct amount that must be disclosed as increase (decrease) in inventory in the cash generated from operations section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(67,700)

b.

(15,200)

c.

52,500

d.

(52,500)

e.

15,200

Question 66

Which of the following alternatives represents the correct amount that must be disclosed as acquisition of listed investments in the cash flows from investing activities section of the statement of cash flows of Ntabazimbili Limited for the year ended 28 February 2023?

a.

(7,100)

b.

(51,500)

c.

51,500

d.

0

e.

7,100