The following information is extracted from the accounting records of Ginger Limited: 1. EXTRACT OF STATEMENT OF FINANCIAL POSITION ITEMS 2020 10 200 10 400 2021 12 000 10 000 22 500 6800 8000 400 15 600 8 900 10 000 Inventories Trade receivables Investment in Didi Ltd (at fair value) Loans to directors Trade payables Prepayments (Insurance) Current tax payable Accrued expenses Dividends receivable Dividends payable Current tax receivable Cash and cash equivalents 2000 800 1900 15 200 1 000 1 100 12 800 2146 4 000 1400 30 800 400 2. EXTRACT FROM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR 28 FEB 2021: Distribution, administrative and other expenses Interest on long-term loan Interest income: loans to directors Dividend income Fair value loss on listed investments Income tax expense 820 2 700 1900 1 800 Additional information: are on credit. Additional information: 1. 2. 3. All sales and purchases are on credit The company's trade is seasonal. The monthly sales of the business are 50% higher in November, December and January, than in the other nine months of the year. The business earns a gross profit of 55% on sales in the mentioned three months and 45% during the remaining nine months. Total sales for the current financial year amounted to R270 000. Included in the distribution, administrative and other expenses is the following: Depreciation R2 000 Credit losses R4 500 The balance of the allowance for credit losses amounted to R2 000 and R1 800 for the financial year ending 2020 and 2021 respectively. The dividends declared by the company at year end amounted to R20 200. Loans to directors are immediately callable and interest on these loans is capitalised. 4. 5. 6. QUESTION 1 QUESTION 1 Which one of the following alternatives represents the correct amount that must be disclosed as cash receipts from customers under the cash flows from operating activities section according to direct method in the statement of cash flows of Ginger Limited for the year ended 28 February 2021? A. 275 700 B. 270 000 C. 254 900 D. 265 700 E. 275 100 Reset Selection QUESTION 2 Which one of the following alternatives represents the correct amount in respect of total credit purchases for the year ended 28 February 2021? A. 141 300 B. 141 750 C. 125 600 D. 132 000 E. 140 000 Reset Selection 6.0 QUESTION 3 Assume the correct amount for credit purchases is R200 000. Which one of the following alternatives represents the correct amount that must be disclosed as cash paid to suppliers and employees under the cash flows from operating activities section according to direct method in the statement of cash flows of Ginger Limited for the year ended 28 February 2021? A. (233 200) B. (230 800) C. (231 400) D. (233 400) O E. (231 000) Reset Selection Question 4 of 11 1.0 QUESTION 4 Which one of the following alternatives represents the correct amount that must be disclosed as interest paid under the cash flows from operating activities section in the statement of cash flows of Ginger Limited for the year ended 28 February 2021? O A. 400 B. 420 C. (420) CD. O E. (400) Reset Selection