Question 5 32 Marks: 42 Minutes

Part A

Play World Ltd is a business in Richardsbay which sells wooden jungle gyms and childrens furniture. The business has been operating for five years, and has a year-end of 31 December.

Bank account for the year ended 31December 2020

1/1	Balance b/d	34 000	1/2	PPE	56 000
	Application & Allotment	85 000	31/4	Salaries & wages	25 000
	Loan	50 500	4/5	Inventory	20 500
31/3	Sales income	80 000	6/6	Interest expense	500
	Trade receivables	49 000	30/6	SARS (Income tax)	22 000
1/7	Asset disposal	15 500	28/8	Rent expense	25 000
28/9	Sales income	33 000	30/9	Trade payables	15 000
	Trade receivables	25 000	4/10	Shareholders for dividends	9 000
			3/11	Interest expense	500
			4/12	Loan	25 000
			30/12	SARS (Income tax)	20 500
			30/12	Inventory	15 000
			31/12	Balance c/d	138 000
		372 000			372 000

Additional Information

The shares were issued on 15 Feb 2020

What was the net cash flow during year ended 31 December 2020?

Closing balance as at 31 December 2020	R138 000
Less: Opening balance as at 1 January 2020	R34 000
Cash inflow/ outflow during the year	R ?

You are required to:

Prepare the CFS for the year ended 31 December 2020. (12)