Question text

Which of the following statements is incorrect relating to preparation of statement of cash flows?

a.

Loss on sale of equipment is a non-cash item.

b.

Depreciation is a non-cash item.

c.

Dividends received is a separately disclosable item.

d.

Capitalization share issue is regarded as a cash item.

e.

Interest paid is a separately disclosable item.

The following information was extracted from the financial records of Mtho Limited at 28 February 2022, the end of the financial year:

2022 2021

Inventory 72 288 21 504

Other financial assets 124 800 120 000

Other financial liabilities 152 640 172 800

Trade receivables 55 008 45 504

Trade payables 31 584 27 360

Additional information:

The gross profit percentage is 35% on sales.

Purchases for the year amounted to R282 400 and 49% thereof were on credit.

Ratios reported in year ended 28 February 2021:

Trade receivables collection period 66.9 days

Trade payables payment period 64.9 days

Inventory turnover rate 6 times

Only 27% of the total sales were cash sales.

Which of the following alternatives represents the correct trade receivables collection period of Mtho Limited for year 2022?

a.66.9

b.51.48

c.70.52

d.141.04

e.142.03

Question text

Which of the following alternatives represents the correct trade payables payment period of Mtho Limited for year 2022?

a.38.09

b.156.48

c155.48

d77.74

e.64.9

Question text

Which of the following alternatives represents the correct inventory turnover rate of Mtho Limited for year 2022?

a.3.22

b.4.94

c.2.47

d.6

e.2.17