QUESTION 9 The following are extracts from the financial statements of Censored Limited for the year ended 31 December 20x9. 34 po Censored Limited Extracts from the statement of comprehensive income Tumover 2 570 000 Cost of goods sold 1908 000) Investment income 1 37 500 1 358 000) Operating expenses Interest on long-tem borrowings 35 500 Income tax expense 88 500 7 800) List of accounts in the statement of financial position at 31 December 20x9 1 655 000 Non-current assets 124 50 Bank favourable Trade receivables List of accounts in the statement of financial position at 31 December 20x9 Non-current assets 20x9 120x8 Bank (favourable) 1 655 000 1 430 000 Trade receivables 124 500 14 000 169 000 Inventory 50 000 160 000 189 000 Share capital. Class A: 20x8-500 000 shares 20x9-600 000 shares 870 000 630 000 Retained earnings 806 500 600 000 Long-term borrowings Trade payables 200 000 350 000 120 000 85 000 South African Revenue Services (income tax owing) 12 000 S 000 Note to PPE: 20x9 20x8 Cost Cost Accum Accum Deprec Carrying Amount Carrying Amount Deprec 1972 000 3 320 000 2 348 000 2.520 000 1 890 000) 630 000 Plant & machinery 200 000 500 000 1 200 000 600 000 Vehicles 530 000 (330 000 lon Completion Status: Readir Office equipment 600 000 |(117 000) 483 000 4 450 000 1500 000 (2 795 000) (300 000) 1200 000 1 655 000 Additional information: 4 220 000 (2 790 000) 1 430 000 1. No dividends were paid or declared during 20x9. 2 Non-current assets are made up as follows: 1. During the year plant with a cost of R256 000, vehicles with a cost of R800 000 and equipment with a cost of R400 000 were sold 2. The plant had been purchased two and a half years earlier and was expected to be used for five years. The vehicles had been purchased four years earlier with an estimated useful live of 8 years at the time of purchase. The accumulated depreciation on the equipment sold was R250 000 3. On 1 June 20x9 100 000 Class A shares were offered to the public at an issue price of R2.60. The issue was undersubscribed by 20 000 shares. The underwriters were Millennium Merchant Bank who negotiated a commission of 5% for their services. The shares were issued on 1 August 20x9. Share issue expenses of R7 000 as well as the underwriter's commission due were paid on 15 August 20x9. 4. Long-term borrowings of R200 000 were repaid during the year. Some of these borrowings were replaced with new long-term borrowings, of which R10 000 is repayable in the year 20x10 and has been transferred to trade payables 5. Included in operating expenses are 1. Profit on disposal of vehicle. R3 200, 2. Loss on disposal of plant R13 000 3. Profit on disposal of equipment R6 800 Required: Prepare the statement of cash flows for the period ended 31 December 20x9. using the direct method. NB: It is important to do calculations on your own, no space are provided to submit them however. Nenntaronneiliatino ar rannarativo era retirar Statement of cash flows for the year ended 31 December 20x9. R Cash flows from operating activities Cash received from customers Cash paid to suppliers and employees -R Cash generated from operations R. Investment income (interest + dividends) R R Interest paid/finance charges Taxation paid R Net cash flow from operating activities Cash flows from investing activities Acquisition of plant and machinery R Acquisition of equipment mo Acquisition of motor vehicles R Proceeds on sale of plant and machinery Proceeds on sale of equipment R Save Alwers Click Saze Sebo some and suo Chich Shue LATISTS to site dans Acquisition of plant and machinery Acquisition of equipment R Acquisition of motor vehicles R Proceeds on sale of plant and machinery R Proceeds on sale of equipment R. Proceeds on sale of motor vehicles R Net cash flows from investing activities R. Cash flows from financing activities Net proceeds from the issue of shares R Loan raised R Loans repaid Net cash flows from financing activities R Cash and cash equivalents for the year Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year