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QUESTION 1 (16 Marks: 29 Minutes) Ignore VAT Domus Limited is a company which sells ultra-modern accessories for the home. The following extracts of the

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QUESTION 1 (16 Marks: 29 Minutes) Ignore VAT Domus Limited is a company which sells ultra-modern accessories for the home. The following extracts of the financial statements have been provided to you: 2020 R 2019 R Domus Limited Statement of Financial Position (Extract) As at 30 April 2020 ASSETS Non-Current Assets Property, plant and equipment 16 379 060 18 472 620 2 861 804 25 450 358 520 Current Assets Pre-paid rentals Trade Receivables SARS - Income Tax Cash and cash equivalents Total Assets 287 650 24 000 257 380 6 270 2 477 834 19 240 864 18 760 270 EQUITY AND LIABILITIES Capital and reserves Share Capital - Class A Retained earnings 13 066 294 8 276 800 4 789 494 11 610 860 7 300 000 4 310 860 Non-Current Liabilities Non-current loans 5 352 000 6 122 000 Current liabilities Trade payables SARS - Income Tax Current portion of non-current loans Bank overdraft Total equity and liabilities 822 570 158 370 14 200 650 000 1 027 410 155 160 680 000 192 250 18 760 270 19 240 864 Additional information: 1. 50 000 Class A shares were issued at R20 each and paid for during the year. Share issue costs paid in cash amounted to R23 200. 2. An interim dividend R542 000 was paid in cash in the 2020 financial year. 3. R800 000 of non-current loans was re-paid in cash in the 2020 financial year. 4. The only asset disposals during the 2020 financial year were for equipment with a carrying amount of R650 00 and machinery with a carrying amount of R456 000. Both items were sold for cash. There were no purchases of property, plant and equipment. 5. All sales are made on credit. Accounting 102/16 October 2020 Dame 2 of 6 QUESTION 1 (CONTINUED) Domus Limited Extract from the Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 April 2020 2020 R Revenue 17 852 000 Cost of sales (8 859 740) Gross profit 8 992 260 Profit on sale of non-current assets - Equipment 7 580 Income before expenses 8 999 840 Operating expenses (7 246 220) Operating profit 1 753 620 Finance costs (340 100) Profit before taxation 1 413 520 Taxation expense (395 786) Profit for the year 1 017 734 Other comprehensive income Total comprehensive income 1 017 734 R II Included in operating expenses (All correctly accounted for), are the following: Advertising Bad debts Depreciation Loss on disposal of non-current assets - Machinery Repairs and maintenance Telephone expenses Other (Including salaries and wages) - all paid in cash 16 080 49 720 987 560 4 600 312 500 9780 5 865 980 7 246 220 REQUIRED: Prepare a Statement of Cash Flows in accordance with IAS 7 (Statement of Cash Flows), of Domus Limited for the year ended 30 April 2020, using the direct method. Notes are not required. Show all workings. (14.5 Marks) Presentation (Layout and format) (1.5 Marks) QUESTION 1 (16 Marks: 29 Minutes) Ignore VAT Domus Limited is a company which sells ultra-modern accessories for the home. The following extracts of the financial statements have been provided to you: 2020 R 2019 R Domus Limited Statement of Financial Position (Extract) As at 30 April 2020 ASSETS Non-Current Assets Property, plant and equipment 16 379 060 18 472 620 2 861 804 25 450 358 520 Current Assets Pre-paid rentals Trade Receivables SARS - Income Tax Cash and cash equivalents Total Assets 287 650 24 000 257 380 6 270 2 477 834 19 240 864 18 760 270 EQUITY AND LIABILITIES Capital and reserves Share Capital - Class A Retained earnings 13 066 294 8 276 800 4 789 494 11 610 860 7 300 000 4 310 860 Non-Current Liabilities Non-current loans 5 352 000 6 122 000 Current liabilities Trade payables SARS - Income Tax Current portion of non-current loans Bank overdraft Total equity and liabilities 822 570 158 370 14 200 650 000 1 027 410 155 160 680 000 192 250 18 760 270 19 240 864 Additional information: 1. 50 000 Class A shares were issued at R20 each and paid for during the year. Share issue costs paid in cash amounted to R23 200. 2. An interim dividend R542 000 was paid in cash in the 2020 financial year. 3. R800 000 of non-current loans was re-paid in cash in the 2020 financial year. 4. The only asset disposals during the 2020 financial year were for equipment with a carrying amount of R650 00 and machinery with a carrying amount of R456 000. Both items were sold for cash. There were no purchases of property, plant and equipment. 5. All sales are made on credit. Accounting 102/16 October 2020 Dame 2 of 6 QUESTION 1 (CONTINUED) Domus Limited Extract from the Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 April 2020 2020 R Revenue 17 852 000 Cost of sales (8 859 740) Gross profit 8 992 260 Profit on sale of non-current assets - Equipment 7 580 Income before expenses 8 999 840 Operating expenses (7 246 220) Operating profit 1 753 620 Finance costs (340 100) Profit before taxation 1 413 520 Taxation expense (395 786) Profit for the year 1 017 734 Other comprehensive income Total comprehensive income 1 017 734 R II Included in operating expenses (All correctly accounted for), are the following: Advertising Bad debts Depreciation Loss on disposal of non-current assets - Machinery Repairs and maintenance Telephone expenses Other (Including salaries and wages) - all paid in cash 16 080 49 720 987 560 4 600 312 500 9780 5 865 980 7 246 220 REQUIRED: Prepare a Statement of Cash Flows in accordance with IAS 7 (Statement of Cash Flows), of Domus Limited for the year ended 30 April 2020, using the direct method. Notes are not required. Show all workings. (14.5 Marks) Presentation (Layout and format) (1.5 Marks)

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