Question
Presented below are the financial statements of sizanani limited: Sizanani limited Statement of comprehensive income for the year ended 28 Feb 2019 Revenue from sales
Presented below are the financial statements of sizanani limited:
Sizanani limited
Statement of comprehensive income for the year ended 28 Feb 2019
Revenue from sales R1 040 900
Cost of sales R(656 300)
Gross profit R384 600
Operating expenses (R 193 200)
Finance cost (37 600)
Profit before tax R 153 800
Income tax expense (R 34 200)
Profit for the period R119 600
Other comprehensive income -
Total comprehensive income
Statement of financial position at 28 Feb 2019(sizanani limited)
ASSETS
Non current Assets R( 2011) R(2010)
445 000 412 000
Land and buildings at cost 362 500 300 000
Plant & equipment at cost 265 500 252 000
Accum depric on plant & equip (183 000) (140 000)
CURRENT ASSETS 447 000 361 000
Accounts receivable 100 000 120 000
Inventory 180 000 220 000
Cash and cash equivalents 167 000 20 000
Prepaid expenses 600 1000
TOTAL ASSETS 892 600 773 000
EQUITY & LIABILITIES
Capital and reserves 450 100 353 000
Share capital 237 500 200 000
Retained earnings 212 600 153 000
NON-CURRENT LIABILITIES
Mortgage bond 322 500 280 000
CURRENT LIABILITIES
Accounts payable 64 000 97 000
SARS 26 000 18 000
Shareholders for dividends 30 000 25 000
TOTAL EQUITY & LIABILITIES 892 600 773 000
Sizanani limited
Statement of changes in equity for the year ended 28 Feb 2019
share capital R/ Retained earnings/ R Total
Balance at 1 march 2010 200 000 153 000 353000
Issue of shares 37 500 - 37 500
Profit for the period - 119 600 119 600
Dividends - (6000) (6000)
Balance at 28 Feb 2019 237 500 212 600 450 100
Additional information:
1. Plant & equipment which cost R24 000 were sold and accumulated depreciation to the date of sale amounted to R 17 000.
2. An amount of R20 000 was repaired on the mortgage bond.
3. Included in operating expenses are the following:
. depreciation expense R60 000
.loss on disposal of plant & equipment R4000
.other distribution expenses R129 200
Required:
Prepare ,using direct method,the statement of cash flows of sizanani limited for the financial year ended 28 February 2019.
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