Simply Sweet has a 30 September year-end, and they prepare their financial statements in accordance with IFRS.

The following correct balances have been extracted from the accounting records of Simply Sweet for the year ended 30 September 2021. Simply Sweet has no other balances at 30 September 2021.

	Notes	2021	2020
Current account		740 000	870 000
Trade receivables	3	1 780 000	1 674 000
Inventory	4	1 420 000	1 560 000
Trade payables		(1 205 000)	(1 365 000)
Amount owing to Sweet plastics	1	?	-
SARS normal tax payable	5	(58 000)	(46 500)
Machinery	1	?	?
Accumulated depreciation and impairment machinery	1	?	(7 500)
Land and Buildings (carrying amount)	2	1 300 000	1 000 000
Share capital		600 000	500 000
Revaluation surplus	2	414 444	100 000
Retained earnings	5	1 920 000	875 000

1. Machinery consists of a wrapping machine that is used by Simply Sweet to wrap up their sweets The details of the wrapping machine are as follows:
   • The wrapping machine was acquired by Simply Sweets on 1 October 2018
   • The wrapping machine is expected to be used by the entity for 6 years and has a nil residual value.
   • The machine is carried on the cost model and is depreciated on a straight-line basis over its useful live.
   • On 1 June 2021 Sarah , one of Simply Sweets leading floral arrangers, approached Micheal and discussed that she had identified a new wrapping machine on the market that would allow products to be wrapped in half the time. Excited at the prospect, Micheal investigated the new machine, Sweets Cover and decided to purchase this machine on 1 July 2021
   • The Sweets Cover has a useful life of 6 years and no residual value.
   • The old machine was sold for cash at a profit of R2000 on 30 June 2021. The total cost of the Sweets Cover was R40 000. The machine was delivered and was available for use on

1 July 2021. The total amount owing will be paid to the supplier, Sweet Plastics on 31

December 2021. No interest is charged by Sweet Plastics on the amounts outstanding.

1. • No other additions or disposals to machinery took place during the year.
2. Land and Buildings consists of the building from which Simply Sweet operates and the land on which the building is situated. The land and buildings were acquired at a cost of R960 000 on 1 October 2018. 80% of the value is attributable to the buildings and 20% of the value is attributable to the land. Land and Buildings are measured using the revaluation model. The buildings have a nil residual value and are depreciated on a straight-line basis over the useful life of 20 years. The land and buildings were revalued for the first time on 30 September 2020. There were not changes to the useful life or the residual value of the buildings on this date. On 30 September 2021 the land and buildings were revalued to their fair value of R1 270 000. There were no disposals of land and buildings during the year. Improvements to the buildings were made on 30 September 2021. These have been correctly capitalized in the balances provided.
3. The trade receivables balance is shown net of the expected credit loss allowance. At 30 September 2021, the expected credit loss allowance was calculated to be R20 000. This is a R2000 increase from the prior year. On 15 September 2021, Simply Sweet received communication from one of their customers , that they would not be able to pay an amount of R1200 that was owing by them.
4. The cost of the inventory on hand at the end of the year was R1450 000. FF calculated the net realizable value to be R1 420 000.
5. The profit after tax correctly calculated including the above transactions was R1 470 000 for the 2021 financial year. Included in this profit after tax is dividend income of R2300 as well as amounts paid for speeding tickets of R900.

Additional Information

• The current tax rate is 28% during the current financial year. Dividends tax is levied at a rate of 20%.
• Please round all answers to the nearest rand

Required
1	Prepare only the following sections of the statement of cashflows for Simply Sweet (Pty) Ltd for the year ended 30 September 2021 using the indirect method: Cashflows from operating activities Cashflows from investing activities Dividends received and paid, and interest received and paid are classified as operating activities for the statement of cashflows. Presentation	39 marks 1 mark