Question
The following information was extracted from the accounting records of Belle Mare Limited Statement of Comprehensive Income for the year ended 31 December 2018 (R)
The following information was extracted from the accounting records of Belle Mare Limited
Statement of Comprehensive Income for the year ended 31 December
2018 (R) | 2017 (R) | ||
Sales | 1 856 000 | 1 200 000 | |
Cost of sales | (1 280 000) | (750 000) | |
Gross profit | 576 000 | 450 000 | |
Operating expenses | (291 200) | (212 000) | |
Depreciation | 30 000 | 26 000 | |
Other operating expenses | 261 200 | 186 000 | |
Operating profit | 284 800 | 238 000 | |
Interest on mortgage loan | (24 000) | (72 000) | |
Profit before tax | 260 800 | 166 000 | |
Income tax | (90 240) | (58 100) | |
Profit after tax | 170 560 | 107 900 |
Statement of Financial Position as at 31 December
2018 (R) | 2017 (R) | ||
ASSETS | |||
Non-current assets | 2 464 160 | 2 444 000 | |
Property, plant & equipment | 2 464 160 | 2 444 000 | |
Current assets | 356 000 | 336 000 | |
Inventories( all Trading Inventory) | 120 000 | 250 000 | |
Trade & other receivables | 40 000 | 64 000 | |
Cash & cash equivalents | 196 000 | 22 000 | |
2820 160 | 2780 000 |
2018 (R) | 2017 (R) | ||
EQUITY & LIABILITIES | |||
Equity | 2 437 560 | 1 980 000 | |
Ordinary share capital (issue at R10 each) | 2 180 000 | 1 760 000 | |
Retained income | 257 560 | 220 000 | |
Non-current liability (Mortgage loan at 12% p.a.) | 200 000 | 600 000 | |
Current liabilities | 182 600 | 200 000 | |
Trade & other payables | 98 000 | 138 000 | |
South African Revenue Services (income tax) | 8 600 | 6 000 | |
Shareholders for dividends | 76 000 | 56 000 | |
2 820 160 | 2 780 000 |
Additional information
- New shares were issued on 1 January 2018
- Interim and final dividends for the year ended 31 December 2018 amounted to R133 000
- Fixed assets were sold at carrying (book) value during the year for R144 000
Required:
Study the information provided above by Belle Mare Ltd and prepare the Statement of Cash Flows (using the indirect method) for the year ended by December 2018
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