Question
The following financial statements relate to Rosengarten Limited for the years ending 30 June 2018 and 2019 respectively: Rosengarten Limited Statement of Comprehensive Income for
The following financial statements relate to Rosengarten Limited for the years ending 30
June 2018 and 2019 respectively:
Rosengarten Limited
Statement of Comprehensive Income for the years ending 30 June:
2019 2018
Rand (000) Rand (000)
Sales (all credit) 7 200 6 200
Cost of sales (all credit) (3 580) (3 112)
Gross profit 3 620 3 088
Operating expenses: (1 034) (1 912)
Operating profit 2 586 1 176
Interest income 40 16
Interest expense ( 96) ( 32)
Profit before tax 2 530 1 160
Company tax (760) (648)
Profit after tax 1 770 512
Depreciation included in the 2019 operating expenses is R200 000.
Statement of changes in equity for the year ended 30 June 2019
Ord share
capital
(000)
Share
premium
(000)
Retained
earnings
(000)
Total
(000)
Balance on 1 July 2018 1 120 60 664 1 844
Issue of share capital 160 156 316
Profit for the year 1 770 1 770
Dividends: Interim ( 128) ( 128)
Final ( 256) ( 256)
Statement of Financial Position as at 30 June:
ASSETS Notes 2019 2018
(000) (000)
Non-current assets 3 556 1 878
Plant and machinery 1 3 156 1 718
Investment 2 400 160
Current assets 1 322 576
Inventory 60 48
Debtors 784 352
Bank 478 176
4 878 2 454
EQUITY AND LIABILITIES
Share capital and reserves 3 546 1 844
Share capital 3 1 280 1 120
Reserves 4 2 266 724
Non-current liabilities 5 724 268
Current liabilities 608 342
Creditors 148 118
Receiver of revenue: Tax 288 170
Accrued expenses 12 4
Dividends 160 50
4 878 2 454
Notes to the Statement of Financial Position:
Non-current assets 2019 2018
1.Tangible Cost Acc.
Dep.
Bk. value Cost Acc. Dep. Bk. value
Plant and machinery 3 420 (264) 3 156 1 782 (64) 1 718
2. Investment
Pep Bank: Fixed (10%) 400 160
3.Share capital
R1 ordinary shares 1 280 1 120
4.Reserves
Share premium 216 60
Retained income 2 050 2 266 664 724
5.Non-current
liabilities
12% Debentures
(2027)
268 268
14% Debentures
(2029)
456 724 - 268
Additional information:
1. No Non-current assets were sold during the year.
2. Inventory on 1 July 2018 was valued at R56 000.
3. Total dividend declared in 2018 amounted to R120 000
4. New 14% Debentures were obtained on 1 July 2018.
Required:
Prepare the Cash Flow Statement for the year ended 30 June 2019.
The following financial statements relate to Rosengarten Limited for the years ending 30
June 2018 and 2019 respectively:
Rosengarten Limited
Statement of Comprehensive Income for the years ending 30 June:
2019 2018
Rand (000) Rand (000)
Sales (all credit) 7 200 6 200
Cost of sales (all credit) (3 580) (3 112)
Gross profit 3 620 3 088
Operating expenses: (1 034) (1 912)
Operating profit 2 586 1 176
Interest income 40 16
Interest expense ( 96) ( 32)
Profit before tax 2 530 1 160
Company tax (760) (648)
Profit after tax 1 770 512
Depreciation included in the 2019 operating expenses is R200 000.
Statement of changes in equity for the year ended 30 June 2019
Ord share
capital
(000)
Share
premium
(000)
Retained
earnings
(000)
Total
(000)
Balance on 1 July 2018 1 120 60 664 1 844
Issue of share capital 160 156 316
Profit for the year 1 770 1 770
Dividends: Interim ( 128) ( 128)
Final ( 256) ( 256)
Statement of Financial Position as at 30 June:
ASSETS Notes 2019 2018
(000) (000)
Non-current assets 3 556 1 878
Plant and machinery 1 3 156 1 718
Investment 2 400 160
Current assets 1 322 576
Inventory 60 48
Debtors 784 352
Bank 478 176
4 878 2 454
EQUITY AND LIABILITIES
Share capital and reserves 3 546 1 844
Share capital 3 1 280 1 120
Reserves 4 2 266 724
Non-current liabilities 5 724 268
Current liabilities 608 342
Creditors 148 118
Receiver of revenue: Tax 288 170
Accrued expenses 12 4
Dividends 160 50
4 878 2 454
Notes to the Statement of Financial Position:
Non-current assets 2019 2018
1.Tangible Cost Acc.
Dep.
Bk. value Cost Acc. Dep. Bk. value
Plant and machinery 3 420 (264) 3 156 1 782 (64) 1 718
2. Investment
Pep Bank: Fixed (10%) 400 160
3.Share capital
R1 ordinary shares 1 280 1 120
4.Reserves
Share premium 216 60
Retained income 2 050 2 266 664 724
5.Non-current
liabilities
12% Debentures
(2027)
268 268
14% Debentures
(2029)
456 724 - 268
Additional information:
1. No Non-current assets were sold during the year.
2. Inventory on 1 July 2018 was valued at R56 000.
3. Total dividend declared in 2018 amounted to R120 000
4. New 14% Debentures were obtained on 1 July 2018.
Required:
Prepare the Cash Flow Statement for the year ended 30 June 2019.
The following financial statements relate to Rosengarten Limited for the years ending 30
June 2018 and 2019 respectively:
Rosengarten Limited
Statement of Comprehensive Income for the years ending 30 June:
2019 2018
Rand (000) Rand (000)
Sales (all credit) 7 200 6 200
Cost of sales (all credit) (3 580) (3 112)
Gross profit 3 620 3 088
Operating expenses: (1 034) (1 912)
Operating profit 2 586 1 176
Interest income 40 16
Interest expense ( 96) ( 32)
Profit before tax 2 530 1 160
Company tax (760) (648)
Profit after tax 1 770 512
Depreciation included in the 2019 operating expenses is R200 000.
Statement of changes in equity for the year ended 30 June 2019
Ord share
capital
(000)
Share
premium
(000)
Retained
earnings
(000)
Total
(000)
Balance on 1 July 2018 1 120 60 664 1 844
Issue of share capital 160 156 316
Profit for the year 1 770 1 770
Dividends: Interim ( 128) ( 128)
Final ( 256) ( 256)
Statement of Financial Position as at 30 June:
ASSETS Notes 2019 2018
(000) (000)
Non-current assets 3 556 1 878
Plant and machinery 1 3 156 1 718
Investment 2 400 160
Current assets 1 322 576
Inventory 60 48
Debtors 784 352
Bank 478 176
4 878 2 454
EQUITY AND LIABILITIES
Share capital and reserves 3 546 1 844
Share capital 3 1 280 1 120
Reserves 4 2 266 724
Non-current liabilities 5 724 268
Current liabilities 608 342
Creditors 148 118
Receiver of revenue: Tax 288 170
Accrued expenses 12 4
Dividends 160 50
4 878 2 454
Notes to the Statement of Financial Position:
Non-current assets 2019 2018
1.Tangible Cost Acc.
Dep.
Bk. value Cost Acc. Dep. Bk. value
Plant and machinery 3 420 (264) 3 156 1 782 (64) 1 718
2. Investment
Pep Bank: Fixed (10%) 400 160
3.Share capital
R1 ordinary shares 1 280 1 120
4.Reserves
Share premium 216 60
Retained income 2 050 2 266 664 724
5.Non-current
liabilities
12% Debentures
(2027)
268 268
14% Debentures
(2029)
456 724 - 268
Additional information:
1. No Non-current assets were sold during the year.
2. Inventory on 1 July 2018 was valued at R56 000.
3. Total dividend declared in 2018 amounted to R120 000
4. New 14% Debentures were obtained on 1 July 2018.
Required:
Prepare the Cash Flow Statement for the year ended 30 June 2019.
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