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QUESTION FIVE [10] The following information was extracted from the accounting records of Humid Limited for the year ended 31 May 2020: Humid Ltd Summary
QUESTION FIVE [10] The following information was extracted from the accounting records of Humid Limited for the year ended 31 May 2020: Humid Ltd Summary of the statement of profit and loss and other comprehensive income for the year ended 31 May 2020 31 May 2020 R Sales 1 840 000 Cost of sales (980 000) Gross profit 860 000 Other income Commission income Profit on sale of non-current asset 185 000 123 000 62 000 Distribution administration and other expenses Audit fees Depreciation Salaries and wages Other expenses (625 000) 58 000 80 000 402 000 85 000 Finance cost Interest on borrowings (40 000) 40 000 - - 380 000 Profit before taxation Income tax expense Profit / total comprehensive income for the year (80 000) 300 000 Humid Ltd Extract from the statement of financial position as at 31 May 2020. 31 May 2020 R 31 May 2019 R 90 000 122 000 5 000 Inventories merchandise - Stationery Trade debtors Bank 330 000 5 800 298 000 53 000 147 000 Trade creditors 170 000 178 000 4 200 1 800 Prepaid expenses Accrued expenses 16 800 17 600 Required: Prepare the following section of the statement of cash flows of Humid Limited for the year ended 31 May 2020: "Cash generated by operations" section only. Note that the entire "cash flows from operating activities section is not required. Humid Limited uses the indirect method to prepare its statement of cash flows
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