QUESTION FOUR $[25]$

The following information was obtained from the accounting records of First Ltd:

Summarised financial position for year ended $31$ December

ASSETS

$2019$

R

$2018$

R

Land and buildings

Investments

Machinery at carrying amount

$104865$

Nil

$6500$

$95470$

$1100$

$1600$

Cost

Accumulated depreciation

$8700$

$(2200)$

$5400$

$(3800)$

Inventories

Trade debtors

Cash at bank

$12000$

$10205$

$13500$

$9000$

$30700$

Nil

TOTAL ASSETS $147070137870$

EQUITY & LIABILITIES

Equity $10007078470$

Ordinary share capital

Retained earnings

$85000$

$15070$

$68000$

$10470$

Liabilities $4700059400$

Long term loan

Bank overdraft

Trade creditors

Income tax payable

Dividends payable

$20000$

Nil

$6600$

$2000$

$18400$

$30000$

$700$

$9200$

$4100$

$15400$

TOTAL EQUITY AND LIABILITIES $147070137870$

$6$

Additional information:

$1.$ The following was extracted from the statement of comprehensive income and statement

of changes in equity for financial year ended $31$ December $2019.$

Income: R

Profit on sale of land and buildings $7000$

Profit on sale of machinery $300$

Expenses:

Depreciation $1000$

Administration expenses $29730$

Selling expenses $12005$

Loss on sale of investment $500$

Interest expense $20$

Taxation expense $18000$

Profit for the year $23000$

Appropriation:

Dividends declared $18400$

$2.$ The investments of the company were sold for R$600$ cash.

$3.$ A portion of the land and buildings with a cost price of R$11000$ was sold during the year

for R$18000$ cash. Additional land was purchased for R$20395$ cash.

$4.$ Machinery to the value of R$6400$ was purchased for cash. Machinery with a carrying

amount of R$500$ was sold at a profit of R$300.$

$5.$ The company paid a portion of the long term liability. No further long term loans were

taken.

$6.$ The company issued new ordinary shares during the year.

Required:

Draft the statement of cash flows for the year ended $31$ December $2019$ method in compliance

with international financial reporting standards in as much as the given information allows. The

indirect method is in use. Show all workings.