The accountant of Willcon (Pty) Ltd provides you with the following financial information for the reporting period ended 28 February 2017: WILLCON (PTY) LTD STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2017 Additional 2017 2016 Information R R ASSETS Non-current assets Investment property at fair value Machinery at cost price Accumulated depreciation: Machinery Vehicles at cost price Accumulated depreciation: Vehicles Trademarks at carrying amount Financial investments (in listed shares) at fair value Total non-current assets 3 3 4 4 6 7 1 450 000 120 000 (30 310) 430 520 (68 000) 123 950 195 000 2 221 160 1 090 000 81 000 (27 820) 275 000 (95 000) 115 000 118 000 1 556 180 Current assets Inventories Trade receivables Other current assets Bank Total current assets Total assets 8 5 721 740 451 150 10 290 2 762 460 3 945 640 6 166 800 657 360 374 760 0 0 1 032 120 2 588 300 EQUITY AND LIABILITIES Equity Share capital Retained earnings Total equity 1 to 4 3 160 000 2 101 070 5 261 070 1 375 000 641 850 2016 850 Non-current liabilities 7% Long term loan 150 000 200 000 9 Current liabilities Trade- and other payables Bank overdraft Current portion of long term loan Tax payable Dividends payable Total current liabilities Total liabilities Total equity and liabilities 494 200 0 50 000 84 700 126 830 755 730 905 730 6 166 800 215 830 2 500 50 000 57 340 45 780 371 450 571 450 2 588 300 Additional information 1 The following information is extracted from the statement of profit or loss for the year ended 28 February 2017: Additional information R 3 4 Revenue/Sales Profit before tax Finance costs Loss on scrapping of building Loss on sale of machinery Profit with fair value re-measurement of investment property Dividends received - financial investments Profit on sale of vehicles Rent income Directors' remuneration Amortisation of trademarks Impairment of trademarks Depreciation on machinery Depreciation on vehicles Profit with fair value re- measurement of financial investments (listed) Doubtful debts increase in allowance Water and electricity Income tax expense 5 890 580 2 604 940 (14 875) (180 000) (1 650) 28 200 10 840 9 650 18 470 (12 950) (18 350) (20 000) (7 610) (51 630) 23 000 (760) (15 730) (887 370) 6 6 3 4 7 2 3 Ordinary and preference dividends were declared during the current financial year and amount to R258 350 During April 2016, machinery with a carrying amount of R32 000 was sold at a loss of R1 650. During the same month, new machinery with a cost price of R23 680 was acquired to replace the sold machinery. Furthermore, additional machinery was purchased as an addition, On 30 May 2016, a vehicle with an original cost price of R128 370 and accumulated depreciation of R78 630, was sold. A portion of the selling price was still receivable at the end of the reporting period (see paragraph 5). The only vehicle purchased during the year, was purchased to replace the sold vehicle Other current assets consist of an amount of R10 290 that it receivable in respect of the sold vehicle. 4 5 6 Intangible assets comprise the following: Additional information Carrying amount at the beginning of the year Gross carrying amount Accumulated amortisation Trademarks R 115 000 145 000 (30 000) 12 47 300 Additions Amortisation for the year Impairment (18 350) (20 000) Gross carrying amount Accumulated amortisation Accumulated impairment Carrying amount at the end of the year 192 300 (48 350) (20 000) 123 950 7 8 During the course of the current financial year, a portion of the financial investments (in listed shares) which was purchased earlier during the current year (with an original cost price of R28 000), was sold at the fair value thereof, namely R40 000. Furthermore, there were financial investments (in listed shares) purchased during the current reporting period. Trade receivables comprise the following: 2017 2016 Trade receivables 458 430 381 280 Allowance for doubtful debts (7 280) (6 520) 451 150 374 760 9 Trade and other payables comprise the following: Trade payables Payable: Trade marks 2017 482 800 11 400 494 200 2016 215 830 0 215 830 REQUIRED: Present and disclose the statement of cash flows for Willcon (Pty) Ltd for the reporting period ended 28 February 2017. Make use of the Anexure provided. (32) Note: Clearly show ALL. calculations Ignore VAT The accountant of Willcon (Pty) Ltd provides you with the following financial information for the reporting period ended 28 February 2017: WILLCON (PTY) LTD STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2017 Additional 2017 2016 Information R R ASSETS Non-current assets Investment property at fair value Machinery at cost price Accumulated depreciation: Machinery Vehicles at cost price Accumulated depreciation: Vehicles Trademarks at carrying amount Financial investments (in listed shares) at fair value Total non-current assets 3 3 4 4 6 7 1 450 000 120 000 (30 310) 430 520 (68 000) 123 950 195 000 2 221 160 1 090 000 81 000 (27 820) 275 000 (95 000) 115 000 118 000 1 556 180 Current assets Inventories Trade receivables Other current assets Bank Total current assets Total assets 8 5 721 740 451 150 10 290 2 762 460 3 945 640 6 166 800 657 360 374 760 0 0 1 032 120 2 588 300 EQUITY AND LIABILITIES Equity Share capital Retained earnings Total equity 1 to 4 3 160 000 2 101 070 5 261 070 1 375 000 641 850 2016 850 Non-current liabilities 7% Long term loan 150 000 200 000 9 Current liabilities Trade- and other payables Bank overdraft Current portion of long term loan Tax payable Dividends payable Total current liabilities Total liabilities Total equity and liabilities 494 200 0 50 000 84 700 126 830 755 730 905 730 6 166 800 215 830 2 500 50 000 57 340 45 780 371 450 571 450 2 588 300 Additional information 1 The following information is extracted from the statement of profit or loss for the year ended 28 February 2017: Additional information R 3 4 Revenue/Sales Profit before tax Finance costs Loss on scrapping of building Loss on sale of machinery Profit with fair value re-measurement of investment property Dividends received - financial investments Profit on sale of vehicles Rent income Directors' remuneration Amortisation of trademarks Impairment of trademarks Depreciation on machinery Depreciation on vehicles Profit with fair value re- measurement of financial investments (listed) Doubtful debts increase in allowance Water and electricity Income tax expense 5 890 580 2 604 940 (14 875) (180 000) (1 650) 28 200 10 840 9 650 18 470 (12 950) (18 350) (20 000) (7 610) (51 630) 23 000 (760) (15 730) (887 370) 6 6 3 4 7 2 3 Ordinary and preference dividends were declared during the current financial year and amount to R258 350 During April 2016, machinery with a carrying amount of R32 000 was sold at a loss of R1 650. During the same month, new machinery with a cost price of R23 680 was acquired to replace the sold machinery. Furthermore, additional machinery was purchased as an addition, On 30 May 2016, a vehicle with an original cost price of R128 370 and accumulated depreciation of R78 630, was sold. A portion of the selling price was still receivable at the end of the reporting period (see paragraph 5). The only vehicle purchased during the year, was purchased to replace the sold vehicle Other current assets consist of an amount of R10 290 that it receivable in respect of the sold vehicle. 4 5 6 Intangible assets comprise the following: Additional information Carrying amount at the beginning of the year Gross carrying amount Accumulated amortisation Trademarks R 115 000 145 000 (30 000) 12 47 300 Additions Amortisation for the year Impairment (18 350) (20 000) Gross carrying amount Accumulated amortisation Accumulated impairment Carrying amount at the end of the year 192 300 (48 350) (20 000) 123 950 7 8 During the course of the current financial year, a portion of the financial investments (in listed shares) which was purchased earlier during the current year (with an original cost price of R28 000), was sold at the fair value thereof, namely R40 000. Furthermore, there were financial investments (in listed shares) purchased during the current reporting period. Trade receivables comprise the following: 2017 2016 Trade receivables 458 430 381 280 Allowance for doubtful debts (7 280) (6 520) 451 150 374 760 9 Trade and other payables comprise the following: Trade payables Payable: Trade marks 2017 482 800 11 400 494 200 2016 215 830 0 215 830 REQUIRED: Present and disclose the statement of cash flows for Willcon (Pty) Ltd for the reporting period ended 28 February 2017. Make use of the Anexure provided. (32) Note: Clearly show ALL. calculations Ignore VAT