QUESTION:

Draft the Statement of Cash Flows of Amanzi Ltd, according to the direct method, for the year ended 31 July 2022, after adjusting for all entries mentioned above.

Amanzi Ltd purifies storm water to re-introduce the purified water back into municipal systems. The The following income and expenses were incurred for the year ended 31 July 2022: 2022 Additional information: 1. A municipality in financial distress wrote a letter to the accountant of Amanzi Ltd, claiming to have paid their debt of R210 000 in July 2022. The accountant recorded this as a payment by a debtor, but in fact the payment was never received by Amanzi Ltd. 2. Trade and other receivables include a provision for credit losses amounting to 50% of R210 000. No provision for credit losses existed at the end of the previous financial year. 3. Other expenses include R310 000 depreciation on plant and machinery and R34 000 loss on sale of plant and machinery for the current financial year, amongst various other balances. 4. For the year ended 31 July 2022 , dividends amounting to R140 000 were declared and dividends of R52 790 were paid. 5. Part of a water purification plant that utilised outdated technology, was sold for R230 000 . Since demand is on a continuous upward scale, the company is expanding and invested in new technology to increase its water purification capacity. 6. A small portion of dormant land was also sold at fair value during the current year. 7. Financial assets are not held for trading, with no intention of short-term profit taking. All financial assets were sold on 1 August 2021