QUESTION 4 The financial statements of a general dealer Mr Elf for the year ended 31 December 20.3 were as follows: Mr Elf Statement of financial position as at 31 December 20.3 ASSETS note 20.3 20.2 Non-current assets R R Property, plant and equipment 1 43 220 41 070 Current assets Inventories 23 900 11 440 Trade and other receivables 2 080 3 030 Cash and cash equivalents _____- 4 340 Total current assets 25 980 18 810 Total assets R69 200 R59 880 EQUITY AND LIABILITIES Equity Capital 26 000 15 000 Non-current liabilities Long-term borrowings 20 000 30 000 Current liabilities Trade and other payables 12 540 14 880 Bank overdraft 10 660 - Total current liabilities 23 200 14 880 Total liabilities 43 200 44 880 Total equity and liabilities R69 200 R59 880 Mr Elf Statement of income for the year ended 31 December 20.3 R R Sales 140 000 Cost of sales (70 000) Gross profit 70 000 Expenses (52 000) Sundry expenses 17 800 Interest expense 2 150 Wages and salaries 24 000 Rent expense 6 000 Depreciation: Furniture 430 Vehicles 1 620 ______ Profit for the year R18 000 38 Mr Elf Statement of changes in equity for the year ended 31 December 20.3 20.3 20.2 Capital Capital R R Balance at 31 December 20.2 24 000 10 000 Profit for the year 18 000 12 950 Drawings for the year (16 000) (7 950) Balance at 31 December 20.3 R26 000 R15 000 Additional information: 1. Property, plant and equipment Land and buildings R Furniture R Vehicles R Total R Carrying amount at beginning of year 34 000 3 800 3 200 41 070 Gross carrying amount 34 000 4 300 4 000 42 300 Accumulated depreciation - (430) (800) (1 230) Additions 4 200 4 200 Depreciation for the year (430) (1 620) (2 050) Gross carrying amount Accumulated profit 34 000 - 4 300 (860) 8 200 (2 420) 46 500 (3 280) Carrying amount at end of year R34 000 R3 440 R5 780 R43 220 2. The new vehicles were acquired to expand operations. Required: Prepare Mr Elfs statement of cash flows for the year ended 31 December 20.3