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Moletji Ltd is public company owned by two prominent business women and the local community trust around the Capricorn District Municipality. The company was founded in the year 2018 and the following information pertains to the company: Extract of accounts pertaining to the statement of financial position as at 31 December: 2020 2019 R R Long-term loan 112 500 89 100 Loans to directors 47 900 13 800 Loans from shareholders 11 100 34 100 Trade payables control 59 900 48 000 Accrued security expense 7 100 1 800 Land and buildings at cost 758 700 615 500 Vehicles at cost 267 100 130 100 Fumiture at cost 86 000 71 300 Investments at fair value 168 700 Accumulated depreciation: Vehicles 62 600 47 600 Accumulated depreciation: Furniture 15 700 13 300 Share capital: ordinary shares 515 200 266 800 Share capital: 12% preference shares 265 500 177 900 Retained earnings 484 100 370 400 Inventory 115 700 77 200 Dividends payable 46 900 14 900 Dividends receivable 3 000 2 500 SARS (income tax) 46 900 Dr 103 800 Trade receivables control 68 400 77 900 Prepaid expenses (advertising) 7 900 5 500 Bank 37 600 2 100 . . Additional information: 1. The following relates to property, plant and equipment: On 31 October 2020, a vehicle with a cost price of R71 000 and accumulated depreciation of R50 000 (on 1 January 2020) was sold for cash. A replacement vehicle was bought on 1 December 2020. On 20 June 2020, furniture with a cost price of R4000 and accumulated depreciation of R1 200 was sold for cash. A replacement fumiture was bought on 31 July 2020. All other purchases were in cash. 2. It is the accounting policy of the company to provide for depreciation as follows: Vehicles: According to the diminishing balance method, at 20% per annum. Furniture: According to the straight-line method, at 25% per annum. 3. The following relates to the shares of the company: On 31 August 2020, the shareholders approved the capitalisation issue of one (1) ordinary share for every four (4) ordinary shares held. On that date the number of ordinary shares issued were 98 000 shares . The capitalisation issue was done from retained earnings at R0,50 per share. All other issued shares were paid for in cash. The company allotted and issued 45 000 ordinary shares and 12% preference shares on 31 October 2020. On 15 December 2020, the company declared an ordinary dividend of 30 cents per share. 4. The investments consist of listed shares in Mankweng Ltd, bought for R3 each on 1 January 2020. The company sold 4 000 of these shares on 30 November 2020 5. The following relates to loans for the company: Interest on long-term loans is capitalised. Loans to directors are interest free and immediately callable. Loans from shareholders are interest free and repayable on 30 November 2022. . # QUESTIONS Which of the blowing a deales Tepresents the correct amount o dal saparately disclosablo turns adided to deducted fonpoolt before tax as part of the adjustments in the case generated to operations sed on according to indirect method in the statement of Gas Pows Moer Linied for the year ended 31 December 2007 A2400 . 8200 0.260 . 0.10000 E. 9 000 F. 11500 Reset Section Question 4 1 32 25 Ports QUESTION 4 Which of the following ternatives represents the correct amount that must be dscosed as increase (decrease) in inventory in the cash generated from operations section of the statement of cash fows of Woleti Linted for the year ended 31 December 2207 A 28 900 B (82000 . . C. (25800) . D.38500 E32000 . (38600)