Question 9

The accounting officer asked for your input in preparation of the statement of cash fiows of Khanyi CC using the indirect method for the year ended 31 August 2019 The following items are extracted from the financial statements and presented to you-31 August 2019 2018 1 774 000 300 000 160 000 35 000 plant and equipment t at fair 188 000 rade receivables 45 000 14 000 C) 97 500Dr33 90 and cash equivalents 440 000 347 000 265 000 88 000 1 100 500 122 000 160 500 8 000 150 000 160 000 to members RS (Cr) 32 400 The note pertaining to property, plant and equipment for the year ended 31 August 2019 is as follows: Equipment Vehicle amount at 1 July 2018 21 000 153 000 (32 000) 110 000 67 000 75 000 (8 000) 90 000 (54 000) (16 000) 87 000 165 000 Cost pric Accumulated depreciation during the year during the year for the year 1 500 000 (44 000) 187 000 263 000 1 500 000 500 000 amount at 31 August 2019 Cost price 32 FAC1601/101/3/2019 ASSIGNMENT 02-SECOND SEMESTER (continued) You have also obtained the following information in respect of the corporation. (All transactions were correctly recorded) Interest Tie loans from members bear interest at a rate of 10% per annum. The interest for the 2019 * financial year was paid in cash to the members There is no interest charged on loans to members The interest expense in respect of the mortgage loan for the 2019 financial year amounted to R87 500. According to the loan agreement the interest was capitalised. The income tax expense was disclosed as R111 000 in the statement of profit or loss and other comprehensive income for the year ended 31 August 2019 An additional amount of loans was received from members on 1 September 2018. The vehicle of the business was stolen on 1 Apil 2019. During the financial year, the insurance company paid the carrying amount of the stolen vehicle to the CC in cash. The close corporation purchased a new vehicle in cash to replace the stolen vehicle. 2. 3. 4. 5. The CC purchased a new building at the beginning of the 2019 financial year. The building was partly paid for in cash from the CC's own resources and the remaining part with a mortgage from FNZA Bank. The proceeds of the mortgage were paid directly to the estate agent. 6. The additions to equipment were paid for in cash 7. The investment consists of 150 000 shares in Platinum Ltd bought at R1 per share. On 31 August 2019 Platinum Ltd declared a dividend of 10 cents per share payable on 15 October 2019. The fair value of the investment R300 000 at year end. ASSIGNMENT 02-SECOND SEMESTER (continued) QUESTION 9 Which option represents the correct amount for cash generated from financing activities in the statement of cash flows of Khanyi CC for the year ended 31 August 2019 1. R 394 500 cash infiow 2 R1 407 500 cash inflow 3. R1 495 000 cash inflow 4. R1 013 500 cash outflow The accounting officer asked for your input in preparation of the statement of cash fiows of Khanyi CC using the indirect method for the year ended 31 August 2019 The following items are extracted from the financial statements and presented to you-31 August 2019 2018 1 774 000 300 000 160 000 35 000 plant and equipment t at fair 188 000 rade receivables 45 000 14 000 C) 97 500Dr33 90 and cash equivalents 440 000 347 000 265 000 88 000 1 100 500 122 000 160 500 8 000 150 000 160 000 to members RS (Cr) 32 400 The note pertaining to property, plant and equipment for the year ended 31 August 2019 is as follows: Equipment Vehicle amount at 1 July 2018 21 000 153 000 (32 000) 110 000 67 000 75 000 (8 000) 90 000 (54 000) (16 000) 87 000 165 000 Cost pric Accumulated depreciation during the year during the year for the year 1 500 000 (44 000) 187 000 263 000 1 500 000 500 000 amount at 31 August 2019 Cost price 32 FAC1601/101/3/2019 ASSIGNMENT 02-SECOND SEMESTER (continued) You have also obtained the following information in respect of the corporation. (All transactions were correctly recorded) Interest Tie loans from members bear interest at a rate of 10% per annum. The interest for the 2019 * financial year was paid in cash to the members There is no interest charged on loans to members The interest expense in respect of the mortgage loan for the 2019 financial year amounted to R87 500. According to the loan agreement the interest was capitalised. The income tax expense was disclosed as R111 000 in the statement of profit or loss and other comprehensive income for the year ended 31 August 2019 An additional amount of loans was received from members on 1 September 2018. The vehicle of the business was stolen on 1 Apil 2019. During the financial year, the insurance company paid the carrying amount of the stolen vehicle to the CC in cash. The close corporation purchased a new vehicle in cash to replace the stolen vehicle. 2. 3. 4. 5. The CC purchased a new building at the beginning of the 2019 financial year. The building was partly paid for in cash from the CC's own resources and the remaining part with a mortgage from FNZA Bank. The proceeds of the mortgage were paid directly to the estate agent. 6. The additions to equipment were paid for in cash 7. The investment consists of 150 000 shares in Platinum Ltd bought at R1 per share. On 31 August 2019 Platinum Ltd declared a dividend of 10 cents per share payable on 15 October 2019. The fair value of the investment R300 000 at year end. ASSIGNMENT 02-SECOND SEMESTER (continued) QUESTION 9 Which option represents the correct amount for cash generated from financing activities in the statement of cash flows of Khanyi CC for the year ended 31 August 2019 1. R 394 500 cash infiow 2 R1 407 500 cash inflow 3. R1 495 000 cash inflow 4. R1 013 500 cash outflow