Please answer everything in 30-40mins i need to submit now its due.
QUESTION 4 _16 marks : 29 minutes) The following is the draft Statement of Financial Position for Coffee and Friends at 29 February 2020 together with the 2019 financial year's comparative figures. The inexperienced bookkeeper has not been able to complete the note to the financial statements for Property, Plant and Equipment and has requested your assistance with the missing figures: COFFEE AND FRIENDS STATEMENT OF FINANCIAL POSITION AT 29 FEBRUARY 2020 Notes 2020 2019 ASSETS R R NON-CURRENT ASSETS Property, plant and equipment 7 ? 95 000 Investments 120 000 85 000 CURRENT ASSETS Inventory Accounts receivable 48 000 33 000 15 000 33 000 24 000 9 000 R291 400 R213 000 CAPITAL AND LIABILITIES CAPITAL Capital: Monica Chandler 240 400 162 000 NON-CURRENT LIABILITIES Loan: Bing Bank 18 000 15 000 CURRENT LIABILITIES Accounts payable Current portion of loan: Bing Bank Bank overdraft 33 000 15 000 6 000 12 000 36 000 18 000 15 000 3 000 R291 400 R213 000 NOTES TO THE FINANCIAL STATEMENTS: 7. Property, plant and equipment Equipment Vehicles Total Net carrying amount - 1 March 2019 Gross carrying amount Accumulated depreciation Disposals (at carrying amount) Acquisitions Depreciation Net carrying amount - 29 February 2020 Gross carrying amount Accumulated depreciation 36 000 54 000 (18 000) ? 13 400 ? ? ? (21 000) 59 000 83 000 (24 000) ? ? (18 000) ? ? (27 000) 95 000 137 000 (42 000) ? ? ? ? ? (48 000) QUESTION 4 (continued) Additional information: 1. 2. Monica Chandler contributed equipment during the current year. This was the only capital contribution during the current year. Her drawings amounted to R7 400 for the year ended 28 February 2019 and R12 800 for the year ended 29 February 2020. During the year equipment with a carrying amount of R12 000 and accumulated depreciation of R6 000, was sold at a profit of R3 000. No other equipment was bought or sold during the year. A vehicle with a cost price of R21 000 was traded in on 1 September 2019 for R4 500 on a new vehicle costing R60 000. The accountant had correctly calculated the depreciation expense for all vehicles for the year to be R18 000 using the straight-line method. All vehicles have an estimated useful life of 4 years. The current portion of the loan was the only repayment made in respect of the loan in the current year. 3. 4. 5. The investment consists of a fixed deposit with Big Apple Bank. REQUIRED: (a) (b) Using the figures calculated to complete the accounting records of Coffee and Friends, prepare the Operating activities' and 'Financing activities' sections of the Statement of Cash Flows for the year ended 29 February 2020. (147) One of the items of Coffee and Friends' equipment is a coffee machine purchased on 27 February 2019 for use by sales personnel. Briefly explain the impact this purchase would have on cash flow and where this purchase would be reflected on the Statement of Cash Flows for the years ended 29 February 2020 and 2019. (112)
