Question 3

Use the information provided below to prepare the Cash Flow Statement for the year ended 31 December 2021. (20 Marks)

INFORMATION The information given below was obtained from the books of Libra Limited on 31 December 2021, the end of the financial year.

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER

	2021	2020
	R	R
ASSETS
Non-current assets	988 400	933 200
Property, plant and equipment	988 400	933 200
Current assets	576 200	446 000
Inventory	102 600	109 200
Accounts receivable	397 600	304 800
Bank	75 300	31 100
Cash Float	700	900
	1 564 600	1 379 200
EQUITY AND LIABILITIES
Equity	755 400	661 400
Ordinary share capital (issue price R1 each)	620 000	548 000
Retained income	135 400	113 400
Current Liabilities	700 000	396 000
Mortgage bond (18% p.a)	700 000	396 000
Current Liabilities9	109 200	321 800
Accounts payable	60 000	236 600
Company tax payable	43 000	37 600
Dividends payable	6 200	47 600
	1 564 600	1 379 200

EXTRACT FROM THE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021

	R
Sales	800 000
Cost of sales	320 000
Interest on Loan	93 600
Depreciation on Vehicles	82 200
Depreciation on Equipment	72 200
Operating profit	253 400
Profit before tax	159 800
Company tax	77 400
Profit after tax	82 400