Question
Presented below are the financial statements of SIZANANI LIMITED: SIZANANI LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBUARY 2019 R Revenue from
Presented below are the financial statements of SIZANANI LIMITED:
SIZANANI LIMITED
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBUARY 2019 R
Revenue from sales 1 040 900
Cost of sales (656 300)
Gross profit 384 600
Operating expenses (193 200)
Finance cost (37 600)
Profit before tax 153 800
Income tax expense (34 200)
Profit for the period 119 600
Other comprehensive income -
Total comprehensive income 119 600
SIZANANI LIMITED
STATEMENT OF FINANCIAL POSITION AT 28 FEBRUARY 2019
R R
2011 2010
ASSETS
Non-current assets 445 000 412 000
Land & buildings at cost 362 500 252 000
Plant & equipment at cost265 500
Accumulated depreciation on Plant & Equipment(183 000) (140 000)
Current assets 447 000 361 000
Accounts receivable 100 000 120 000
Inventory 180 000 220 000
Cash & cash equivalents 167 000 20 000
Prepaid expenses 600 1 000
TOTAL ASSETS 892 600 773 000
EQUITY & LIABILITIES
Capital & 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 120 000 140 000
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 FEBRUARY 2019
SHARE CAPITAL RETAINED EARNINGS TOTAL
R R R
Balance at 1 March 2010 200 000 153 000 353 000
Issue of shares 37 500 - 37 500
Profit for the period - 119 60 01 19 600
Dividends - (60 000) (60 000)
Balance at 28 February 2019 237 500 212 600 450 100
Additional information:
1. Plant & equipment which cost R 24 000 were sold and accumulated depreciation to the date of sale amounted to R17 000.
2. An amount of R 20 000 was repaid on the mortgage bond.
3. Included in operating expenses are the following:
Depreciation expense R 60 000
Loss on disposal of plant & equipment R 4 000
Other distribution expenses R 129 200
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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