Statement of financial position as at 30 September 2018 and 2017 ASSETS 2018 2017 Non-current assets: Property, plant and equipment 2 362 000 2 480 000 Investment 370 000 250 000 Current assets: Inventories 146 000 131 200 Debtors 135 350 147 200 Prepaid expenses 6 300 TOTAL ASSETS Swaziland Revenue Authority (SRA) Cash and cash equivalents EQUITY AND LIABILITIES Equity: 120 250 5 960 6440 84 300 R3 139 900 R3 105 100 2018 2017 Issued capital-ordinary shares Issued capital-preference shares 1 225 000 272 700 1225 000 Other components of equity 70 000 Retained earnings 439 849 360 755 Total Equity 2007 549 1 585 755 Non-current liabilities: 16% Interest bearing borrowings 250 000 625 000 (Mortgage loan) 20% Debentures 526 845 526 845 Current liabilities: Creditors 96 350 142 500 Income tax payable-SRA 12 888 Interest payable 96 268 100 000 Shareholders for dividends (ordinary 150 000 125.000 and preference) TOTAL EQUITY AND LIABILITIES 3139 900 3.105 100 Additional Information: 1. During the year ended 30 September 2018, 500 000 preference shares were issued for E275 000 Share issue expenses of E2 300 were paid. 2. The 20% debentures were issued on 1 October 2009 and they are all repayable on 30 September 2022. 3. Debtors are reflected on the statement of financial position net of a provision for doubtful debts of E5 640 in 2018 and EG 133 in 2017. O 28 4. Property, plant and equipment consisted of the following: 2018 Cost Accumulated depreciation Carrying amount Land and buildings 1 750 000 1 750 000 Equipment Vehicles 480 000 360 000 2 590 000 168 000 312 000 60 000 228 000 300 000 2 362 000 2017 Cost Accumulated depreciation Carrying amount Land and buildings 2 200 000 2 200 000 Equipment 400 000 120 000 280 000 Vehicles 2 600 000 120 000 2 480 000 5. The following transactions took place relating to non-current assets and investments during the year a) Land and buildings with a cost price of E450 000 were sold for E520 000 and the profit on sale of the asset has been transferred to an asset replacement reserve. No further sales or purchases were made b) Investments, with a cost E125 000 were sold at a profit of E12 450 c) No equipment was sold during the year You are required to: A Prepare the statement of cash flows of Petina Limited for the year ended 30 September 2018 in accordance with the requirements of 1AS7 (19 Marks) B. Show the note for the reconciliation of the profit before taxation with the cash generated from operating activities. C. Show the following calculations ) Cash receipts from customers ii) Cash paid to suppliers and employees (6.5 Marks) (2 Marks) (4.5 Marks) (QUESTION 1: TOTAL MARKS 32) 4. Property, plant and equipment consisted of the following: 2018 Cost Accumulated depreciation Carrying amount Land and buildings 1 750 000 1 750 000 Equipment Vehicles 480 000 360 000 2 590 000 168 000 312 000 60 000 228 000 300 000 2 362 000 2017 Cost Accumulated depreciation Carrying amount Land and buildings 2 200 000 2 200 000 Equipment 400 000 120 000 280 000 Vehicles 2 600 000 120 000 2 480 000 5. The following transactions took place relating to non-current assets and investments during the year a) Land and buildings with a cost price of E450 000 were sold for E520 000 and the profit on sale of the asset has been transferred to an asset replacement reserve. No further sales or purchases were made b) Investments, with a cost E125 000 were sold at a profit of E12 450 c) No equipment was sold during the year You are required to: A Prepare the statement of cash flows of Petina Limited for the year ended 30 September 2018 in accordance with the requirements of 1AS7 (19 Marks) B. Show the note for the reconciliation of the profit before taxation with the cash generated from operating activities. C. Show the following calculations ) Cash receipts from customers ii) Cash paid to suppliers and employees (6.5 Marks) (2 Marks) (4.5 Marks) (QUESTION 1: TOTAL MARKS 32)