QUESTION THREE $[25]$

The annual financial statements of Bongo $($Pty$)$ Ltd are in the final stages of completion for the

year ended $30$ June $2023.$ The following information was extracted to prepare the statement of

cash flows for the current financial year.

Bongo $($Pty $)$ Ltd

Statement of financial position as at $30$ June $2023($with comparative values for $30$ June $2022)$:

ASSETS

$30$ June $2023$

R

$30$ June $2022$

R

Equipment at carrying amount

Inventory

Trade receivables

Bank

$636000$

$48000$

$22800$

$202800$

$324000$

$45600$

$27600$

$120000$

Total Assets $909600517200$

EQUITY AND LIABILITIES

Equity $636000348000$

Ordinary share capital

Retained earnings

$396000$

$240000$

$300000$

$48000$

Liabilities $273600169200$

Long term borrowings

Trade payables

Income received in advance

SARS: Tax payable

$186000$

$25200$

$26400$

$36000$

$48000$

$76800$

$19200$

$25200$

Total Equity and Liabilities $909600517200$

Additional Information:

$1$ Authorised share capital: $1000000$ Ordinary shares

$2$ Issued share capital: $100000$ Ordinary shares were sold for cash during the current

financial period.

$3$ Dividends of R$30000$ were declared and paid on $20$ June $2023.$

$4$ Equipment with a carrying amount of R$240000$ was sold and new equipment was

purchased during the current financial year.

$5$ Bongo $($Pty$)$ Ltd raised a long term loan of R$168000$ in May $2023.$

$6$ The following information was extracted from the statement of comprehensive income

for the year ended $30$ June $2023$:

$$ Sales for the year was R$1464000$

$$ Rental income was R$26400.$

$$ Profit on disposal of equipment R$36000$

$$ Depreciation R$48000$

$$ Interest expense R$50400$

$$ Income tax expense R$147600$

$$ Profit after tax R$222000.$

Required:

Prepare the statement of cash flows for Bongo $($Pty$)$ Ltd for the financial year ended

$30$ June $2023$ in compliance with the requirements of the International Financial Reporting

Standards $($IFRS$)$ in as much as the given information allows. Use the indirect method.