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The following information pertains to Dolly Limited. 1. Extract from ledger account balances as at 28 February: 20.21 20.20 R R Share capital: Ordinary shares

The following information pertains to Dolly Limited.

1. Extract from ledger account balances as at 28 February:

20.21 20.20
R R
Share capital: Ordinary shares 308 600 251 200
Share capital: Preference shares 254 100 239 100
Retained earnings 50 900 41 200
Long-term loan - ABC Bank 84 700 121 000
Land and buildings at cost 399 300 375 100
Machinery and equipment at carrying amount 228 600 219 700
Inventory 83 100 74 100
Trade receivables control 104 800 95 000
Listed investments 146 900 -
Bank 17 200 30 000
Trade payables control 63 900 61 200
SARS (income tax) 62 700 43 000
Dividends payable 41 000 36 500
Dividends receivable 30 000 25 500
Accrued expenses (wages) 18 000 13 000
Prepaid expenses 10 300 3 700
Revenue 887 600
Cost of sales 416 600
Administrative, distribution and other expenses 157 100
Fair value gain on listed investments 7 500
Dividends income 18 900
Loss on sale of machinery and equipment 7 800
Income tax expense 48 700
Depreciation 13 600
Wages 82 300
Insurance expense 11 400

2. Additional information

2.1 The following pertains to property, plant and equipment

2.1.1 During the year machinery and equipment with a carrying amount of R35 000 was sold. This transaction has been correctly recorded.

2.1.2 Land and buildings with a cost price of R50 000 were sold for cash at the same amount. Land and buildings are not depreciated.

2.1.3 All purchases of property, plant and equipment pertained to replacements and were paid in full.

2.2 On 29 February 20.21 Dolly Limited declared ordinary shares dividend of 38 cents per share whilst the preference share dividends amounted to R20 800.

2.3 The interest expense on the long-term loan amounted to R8 500 and was added in the administrative, distribution and other expenses amount above.

2.4 On 31 August 20.20, when the total number of ordinary shares issued were 120 000 shares, the shareholders approved the capitalisation issue of one (1) ordinary share for every four (4) ordinary shares held. The capitalisation issue was done from retained earnings at R0,50 per share. All other issued shares were paid for in cash.

Which of the following alternatives represents the correct amount that must be disclosed as dividends paid in the cash flows from operating activities section according to direct method in the statement cash flows of Dolly Limited for the year ended 28 February 20.21?

  • A.

    (62 400)

  • B.

    (61 900)

  • C.

    (73 800)

  • D.

    (62 200)

  • E.

    (73 300)

  • F.

    (73 600)

Which of the following alternatives represents the correct amount that must be disclosed as cash receipts from customers in the cash generated from operations section according to direct method in the statement cash flows of Dolly Limited for the year ended 28 February 20.21?

  • A.

    785 400

  • B.

    695 000

  • C.

    776 000

  • D.

    877 800

  • E.

    686 000

  • F.

    887 600

Which of the following alternatives represents the correct amount that must be disclosed as acquisition of listed investments in the cash flows from operating activities section according to direct method in the statement cash flows of Dolly Limited for the year ended 28 February 20.21?

  • A.

    (139 400)

  • B.

    0

  • C.

    (123 600)

  • D.

    (110 000)

  • E.

    (115 000)

  • F.

    (130 000)

Which of the following alternatives represents the correct amount that must be disclosed as acquisition of listed investments in the cash flows from investing activities section according to direct method in the statement cash flows of Dolly Limited for the year ended 28 February 20.21?

  • A.

    0

  • B.

    (110 000)

  • C.

    (123 600)

  • D.

    (130 000)

  • E.

    (139 400)

  • F.

    (115 000)

Which of the following alternatives represents the correct amount that must be disclosed as addition/replacement of land and buildings under investment in property plant and equipment to maintain operating capacity in the cash flows from investing activities section in the statement cash flows of Dolly Limited for the year ended 28 February 20.21?

  • A.

    (22 000)

  • B.

    (72 000)

  • C.

    (24 200)

  • D.

    (70 000)

  • E.

    0

  • F.

    (74 200)

Which of the following alternatives represents the correct amount that must be disclosed as proceeds from issue of shares in the investing activities section in the statement cash flows of Dolly Limited for the year ended 28 February 20.21?

  • A.

    50 900

  • B.

    45 000

  • C.

    65 900

  • D.

    72 400

  • E.

    0

  • F.

    57 400

Which of the following alternatives represents the correct amount that must be disclosed as repayment of long-term loans in the financing activities section in the statement cash flows of Dolly Limited for the year ended 28 February 20.21?

  • A.

    (42 100)

  • B.

    (33 000)

  • C.

    (45 100)

  • D.

    (30 000)

  • E.

    (38 500)

  • F.

    (36 300)

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