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.