Question 1 (40 Marks The following is an extract from the financial statements of Thandeka (Pty) Ltd for the year ended 31 December 2021. Thandeka (Pty) Ltd Statement of Financial Position as at 31 December 2021. Additional Information: - Operating profit was arrived at after allowing for the following: - During the year, equipment with a carrying value of R42 750 (Cost, R48 750) was sold for R45 000, and replaced at a cost of R41250. All other assets (Land and buildings, R51 000, Plant and equipment, R150 000) were acquired for expansion purposes. - Cash and cash equivalents on 31 December 2021 comprised cash in the bank of R3 000, cash float of R900 and petty cash of R1350. Cash and cash equivalents on 31 December 2020 comprised cash in the bank of R7800 and petty cash of R1950. Required: Prepare Cashflow Statement for the year ended 31 December 2020 using the direct method. The following is Zulu statement of financial position for the year ended 31 December 2020. Additional information: - The following balances are available for 31 December 2020 i) Inventory R480 000 ii) Trade receivables R306000 iii) Trade payables R522000 - Tum over for the year ended 31 December 2020 amounted to R12000000. The gross profit percentage is 25% - Half of the tumover is credit sales and 75% of purchases are credit purchases. Required: Calculate the following ratios for the year ended 31 December 2020. - Debt ratio - Current ratio - Quick ratio - Debtors' collection period - Creditors payment period - Debt to equity ratio A fishing licence was purchased by Thandeka (Pty) Ltd, and the directors of the company are determined to recognise the licence as a physical asset as it is written on a paper. Do you agree with the decision made by Thandeka (Pty) Ltd? Question 4 (10 Marks) A machine was acquired by Dee Limited which needs a specialised software in order to operate. Explain if the entity should recognise the software as tangible or intangible. Question 5 (25 Marks) Thando Limited was incorporated during 2021: Preliminary costs (legal costs incurred in connection with the start-up of the company) of R10 000 were paid on 2 January 2021. 2000 ordinary no par value shares were issued at R100 each on 5 January 2021. Share issue costs of R2000 were paid on 5 January 2021. On 15 January 2021,500 of these shares were converted into 12% preference share equity. The draft statement of comprehensive income for 2021 , before processing any adjustments for the above transactions, reflected total comprehensive income for 2021 of R120 000 (components of other comprehensive income: R0 ). Required: Process journals to account for the preliminary costs, share issue and the related share issue costs