QUESTION $1$

Peak Performance Technologies Ltd $($hereafter $"$PPT$")$ stands at the forefront of

innovation and manufacturing of advanced sports equipment. The company has

captured the market with its state$-$of$-$the$-$art products, pushing boundaries in both

design and functionality. The financial extracts below detail the statement of financial

position as of $30$ June $2024$ and figures from the statement of profit and loss and

other comprehensive income.

Statement of financial position of Peak Performance Technologies Ltd as at $30$

June $2024$: Extracts from the statement of profit or loss and other comprehensive income

of Peak Performance Technologies Ltd for the year ended $30$ June $2024$ Additional information:

All information below has already been correctly accounted for:

Property, plant, and equipment:

Land was independently revalued.

New equipment purchases totalled R$217,000$ in cash.

Old equipment was sold at a R$32000$ loss, with an initial cost of R$80000$ and a

carry value of $R75000$ on the date of sale.

No impairments occurred.

Investment Activities:

PPT owns shares in SuperShorts $($Pty$)$ Ltd$.$ During the $2024-$year, additional

shares were bought for R$198000,$ and some shares were sold at a $20\%$ profit,

totaling an R$9600$ gain.

Dividend income of R$17500$ was received and included under other income.

Trade Receivables:

The amount of Trade Receivables reported here represents the net figure on the

statement of financial position. This net figure is arrived at after adjusting the gross

trade receivables.

Specifically, a $5\%$ allowance for doubtful debts has been applied to the gross

trade receivables to account for potential non$-$collection.

Additionally, bad debts amounting to R$12375,$ which were identified as

uncollectible due to insolvency, have been written off and are reflected in the

allowance for doubtful debts.

Prepaid Expense:

The annual insurance contract runs from $1$ January to $31$ December, with a $10\%$

annual increase in the premium. PPT has been using the same insurer for the last

few years.

Insurance for the year is always paid in full on $1$ January.

This is the only prepaid expense PPT has. Equity Transactions:

Dividends of R$20805$ for Class A shares were declared for the $2024$ financial

year.

On $30$ June $2024,$ PPT issued $1000$ new $6\%$ Class B preference shares for

R$150000$ cash.

Borrowings:

An additional long$-$term loan was procured on $1$ December $2024$ for expansion.

Interest is fixed and remains unchanged from the previous years.

Interest paid on the overdraft was R$1750.$

REQUIRED:

Prepare the Statement of Cash Flows for Peak Performance Technologies Ltd for

the year ending $30$ June $2024,$ employing the indirect method. Show all calculations

and reference accordingly.

Deferred tax and dividends tax are not to be considered in your preparation.$|$Prepare the Statement of Cash Flows for Peak Performance Technologies Ltd for the year ending $30$ June $2024,$ employing the indirect method. Show all calculations and reference accordingly.

Deferred tax and dividends tax are not to be considered in your preparation.