Question 13

Given information for questions 13 to 16: The following information pertains to R'YouSure CC. Extract of statement of financial position balances as at 28 February 2020 Member's contributions.. Retained earnings (opening balance). Land and buildings at cost. Furniture and equipment at cost. Accumulated depreciation: Furniture and equipment Inventory Bank...... Trade receivables control Long term loan (Bantu bank) Trade payables control Distribution to members payable Accrued income (Rent receivable).. Accrued expenses (Salaries and wages) Fixed deposit.... R 680 000 60 360 435 000 31 200 4 800 144 000 100 860 Dr 210 900 108 000 168 600 92 000 600 1 800 60 000 2019 R 580 000 76 200 615 000 21 000 3 000 150 600 15 000 Cr 111 000 78 000 145 800 275 800 1 200 600 Given information for questions 13 to 16: (continued) Extract of items disclosed in the statement of profit or loss and other comprehensive income for the year ended 28 February 2020 Revenue Cost of sales Profit on sale of non-current asset (land and buildings) Rental income Operating and administrative expenses (salaries and wages included) Depreciation Interest expense (long-term loan) Profit for the year R 750 900 294 540 15 000 7 200 105 000 1 800 9000 337 240 Additional information (a) The fixed deposit was made on 28 February 2020. (b) The long-term loan is repayable in November 2022. Interest is charged per annum and is capitalised (c) No land and buildings were purchased during the year. Fifty percent of the selling price of the land and buildings was received in cash, whereas the outstanding amount is to be received in May 2020. The bookkeeper included amount owing was included in the trade debtors account (d) No furniture or equipment was sold or scrapped during the year. All purchases were paid for in cash (e) All purchases of inventory were on credit. All of the other expenses, except the accrued expenses, were paid in full. () On 28 February 2020, the members of the CC decided on a profit distribution of R193 600. (9) The trade receivables balance at 28 February 2020 pertains to trade debtors and the debtor in respect of the sale of land and buildings. (h) All capital contributions were made in cash. Income tax expense for the financial year amounted to R12 760. QUESTION 13 (9 marks) Which one of the following alternatives represents the correct amount that must be disclosed as cash generated from operations (using the INDRECT METHOD) in the statement of cashflows of R'YouSure Cc for the year ended 28 February 2020? 1. R387 360 2. R374 000 3. R374 600 R361 840 4