Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SHERS m[10] The following information was extracted from the accounting records of Humid Limited for the year ended 31 May 2020:| Humid Ltd Extract from

image text in transcribed

SHERS m[10] The following information was extracted from the accounting records of Humid Limited for the year ended 31 May 2020:| Humid Ltd Extract from the statement of financial position as at 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 90 000 5 000 Inventories - merchandise - - Stationery Trade debtors Bank Trade creditors Prepaid expenses Accrued expenses 31 May 2019 R 122 000 5 800 298 000 53 000 178 000 1 800 17 600 330 000 147 000 170 000 4 200 31 May 2020 R 1 840 000 (980 000) 860 000 Sales Cost of sales Gross profit 16 800 185 000 123 000 62 000 Required: Other income Commission income Profit on sale of non-current asset 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 Distribution administration and other expenses Audit fees Depreciation Salaries and wages Other expenses (625 000) 58 000 80 000 402 000 85 000 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. Finance cost Interest on borrowings (40 000) 40 000 Profit before taxation Income tax expense (80 000) Profit / total comprehensive income for the year 300 000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting For Business

Authors: Colin Drury, Mike Tayles

8th Edition

1473778808, 978-1473778801

More Books

Students also viewed these Accounting questions

Question

Why would an investor purchase a convertible bond?

Answered: 1 week ago

Question

1. What is nonverbal communication?

Answered: 1 week ago