Question
The following information was extracted from the accounting records of Autima Projects Limited on 30 April 2020, the last day of their financial year. Information
The following information was extracted from the accounting records of Autima Projects Limited on 30 April 2020, the last day of their financial year.
Information
- Extract from the Statement of Comprehensive Income
Depreciation | 16 000 |
Interest expense | 18 000 |
Income tax for the year | 15 000 |
Net profit after tax | 26 100 |
- Extract from Statement of Financial Position
| 30 April 2020 | 30 April 2019 |
Tangible assets at carrying value | 310 000 | 220 000 |
Inventories | 50 000 | 35 000 |
Trade debtors | 60 000 | 65 000 |
Cash on hand | 3 000 | 15 000 |
Bank overdraft | 32 000 | 0 |
Prepaid expense (Interest on loan) | 2 000 | 1 000 |
Ordinary share capital | 160 000 | 100 000 |
Share premium | 45 000 | 30 000 |
Retained income | 81 000 | 75 000 |
Loan from Pinetown Bank | 58 000 | 49 000 |
Trade creditors | 45 000 | 59 000 |
Shareholders for dividends | 12 000 | 9 000 |
SARS income tax | (Receivable) 8 000 | (Payable) 14 000 |
- Additional information
- Some fixed assets were sold for R37 000 cash at carrying value and additional fixed assets were purchased during the year.
- Interim dividends at R8100 was declared and paid on 31 October 2019.
- Final dividends were declared on 30 April 2020 and will be paid on 19 May 2020.
Required:
Prepare the following:
Compile the note for reconciliation between profit before taxation and cash generated from operations.
Prepare the cash flow statement for the year ended 30 April 2020. All workings must be shown in brackets to earn part-marks.
Explain the purpose of a cash flow statement?
Note: All workings must be shown and answers must be typed in.
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