Question
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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