Question 1

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The information below relates to questions below:

You have been presented with the following information to assist in the preparation of the statement of cash flows for Mhlabavuleka Limited:

Extract of items from the statement of financial position information as at 28 February 2023:

	2023	2022
	R	R
Dividends receivable	20,500	12,500
Listed investment at fair value	274,200	220,000
Current tax receivable	23,800	8,500
Inventory	67,500	51,900
Interest receivable	-	7,100
Trade debtors control	52,700	49,300
Bank (Dr)	43,800	30,000
Loans to director	252,500	236,300
Machinery at cost	191,700	240,600
Accumulated depreciation: Machinery	41,100	14,600
Land and buildings	808,800	481,100
Share capital	711,300	628,000
Retained earnings	968,400	567,900
Revaluation reserve	168,700	118,500
Mortgage	78,300	209,600
Dividends payable	10,900	17,400
Trade creditors control	33,800	20,700
Interest payable	13,400	9,700

Extract of items disclosed in the statement of profit or loss and other comprehensive income information for the year ended 28 February 2023:

	R
Profit on sale of machinery	12,300
Interest income: loans to directors	10,100
Investment income: Dividend received	11,300
Rental income	21,800
Gain on financial assets at fair value through profit or loss	23,500
Interest expense	11,100
Depreciation (machinery)	45,400
Income tax expense	197,000

Additional information

1. The company presents the statement of cash flows using the indirect method.

2. Mhlabavuleka Limited's net cash flow position deteriorated significantly towards the end of the financial year and as a result, only R88 000 was paid as dividends to shareholders (in cash).

3. To aid the cash flow position, the company sold property, plant and equipment in cash.

4. The purchases of property, plant and equipment were made from second-hand dealers in cash.

5. According to the policy of the company, all the loans advanced to the directors are immediately callable and interest charged on these loans is capitalised.

Which of the following alternatives represents the correct amount that must be disclosed as profit before tax in the cash generated from operations section according to indirect method in the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

679,000

b.

482,000

c.

580,000

d.

968,400

e.

480,000

Clear my choice

Question 2

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Which of the following alternatives represents the correct amount that must be disclosed as acquisition of listed investments in the cash flows from operating activities section of the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

(30,700)

b.

30,700

c.

54,200

d.

(54,200)

e.

0

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Question 3

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Which of the following alternatives represents the correct amount that must be disclosed as income tax paid in the cash flows from operating activities section of the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

(197,000)

b.

181,700

c.

(212,300)

d.

(181,700)

e.

197,000

Question 4

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Which of the following alternatives represents the correct amount that must be disclosed as loans advanced to (received from) directors of the company in the cash flows from financing activities section of the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

(6,100)

b.

6,100

c.

(16,200)

d.

16,200

e.

0

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Question 5

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Which of the following alternatives represents the correct amount that must be disclosed as additions to property, plant and equipment under investment in property plant and equipment to expand operating capacity in the cash flows from investing activities section according to direct method in the statement cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

277,500

b.

(277,500)

c.

0

d.

(327,700)

e.

327,700

Question 6

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Which of the following alternatives represents the correct amount of total separately disclosable items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

9,600

b.

(9,600)

c.

(10,300)

d.

10,300

e.

(200)

Question 7

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Which of the following alternatives represents the correct amount that must be disclosed as proceeds on sale of property, plant and equipment in the cash flows from investing activities section according to direct method in the statement cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

30,000

b.

42,300

c.

0

d.

(30,000)

e.

(42,300)

Question 8

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Which of the following alternatives represents the correct amount that must be disclosed as interest paid in the cash flows from operating activities section of the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

11,100

b.

(7,400)

c.

(20,800)

d.

(11,100)

e.

7,400

Question 9

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Which of the following alternatives represents the correct amount of total non-cash items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

10,300

b.

21,900

c.

9,600

d.

(9,600)

e.

(10,300)