QUESTION 4 (20 MARKS) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2021 (R) 2020 (R) REQUIRED Use the information provided below to prepare the Cash Flow Statement of Nascar Limited for the year ended 31 December 2021. INFORMATION The following Information was extracted from the records of Nascar Limited for the past two years: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: ASSETS Non-current assets 24 641 600 24 440 000 Fixed assets 24 641 600 24 440 000 Current assets 3 560 000 3 360 000 Inventories (all Trading inventory) 1 200 000 2 500 000 Accounts receivable 400 000 640 000 Cash & cash equivalents 1 960 000 220 000 2021 (R) Sales Cost of sales 18 560 000 (12 800 000) 2020 (R) 12 000 000 (7 500 000) 28 201 600 27 800 000 EQUITY AND LIABILITIES Gross profit 5 760 000 4 500 000 Equity 24 495 600 19 883 000 Operating expenses (2 912 000) (2 120 000) Ordinary share capital 21 800 000 17 600 000 Depreciation 300 000 260 000 Retained income 2 695 600 2 283 000 Other operating expenses 2 612 000 1 860 000 Non-current liabilities 2 000 000 6 000 000 Operating profit 2 848 000 2 380 000 Mortgage loan (12% p.a.) 2 000 000 6 000 000 Interest on mortgage loan (240 000) (720000) Profit before tax 2 608 000 1 660 000 Company tax (782 400) Profit after tax 1825 600 (498 000) 1 162 000 Current liabilities Accounts payable SARS (Company tax) Shareholders for dividends 1 706 000 850 000 1 290 000 96 000 67 000 760 000 560 000 28 201 600 27 800 000 1917 000 2021 2020 Profit margin (Net profit margin) 9.84% 9.68% Acid test ratio 1.38:1 0.45:1 Return on equity 7.45% 5.84% Additional information The issue price of all the shares is R10 each. New shares were issued on the first day of the financial year. Interim and final dividends for the year ended 31 December 2021 amounted to R1 413 000. Fixed assets were sold at carrying (book) value during the year for R1 440 000. Fixed assets were also purchased. The shares in Nascar Limited are currently selling for R12 each. All purchases and sales of inventories are on credit. The following ratios have been calculated: