The information below relates to questions 1 20.

Mnambithi CC has presented you with the following information CC for the preparation of the statement of cash flows for the previous financial year ended 31 August 2022:

Extract from the statement of financial position as at 31 August 2022:

	2022	2021
	R	R
Land and buildings (at cost)	730 300	470 400
Machinery (at cost)	399 700	365 200
Accumulated depreciation: Machinery	112 100	48 000
Dividend receivable	14 000	65 000
Trade receivables control	69 500	65 600
Distribution to members payable	71 300	100 400
Members contributions	1 161 500	995 000
Retained earnings	210 500	73 500
Long-term loan	258 100	182 700
Trade payables control	126 600	69 600
Current tax payable	57 500	41 300
Loans to members	90 700	35 200
Loans from members	109 800	-
Bank	128 500	198 000
Accrued water and electricity expenses	5 300	2 600
Inventory	38 300	24 000
Investment (at fair value)	131 700	-
Prepaid telephone expense	13 700	12 400
Fixed deposit	17 400	13 400

Extract from the statement of profit or loss and other comprehensive income for the year ended 31 August 2022:

	R
Revenue	671 300
Cost of sales	314 000
Investment income: dividend income	11 700
Fair value gain on listed investments	16 500
Interest income on loans to members	11 200
Interest income on loans from members	12 100
Interest expense on long term loans	9 700
Income tax expense	85 300
Loss on sale of machinery	6 400
Office expenses	16 200
Repairs and maintenance	19 600
Telephone expenses	21 600
Water and electricity	36 500
Depreciation on machinery	64 200

Additional information

1. Interest on loans advanced to and received from members is capitalised. All loans to members are immediately callable whilst the total amount owing to members is payable on 31 August 2024.

2. Improvements to land and buildings were carried out during the year.

3. All inventories are purchased and sold on credit.

4. Cash flows from operating activities are presented using the direct method

5. Profit distribution to members paid amounted to R30 000.

6. Machinery with a cost price of R21 000 and accumulated depreciation of R8 800 was sold for cash. A replacement machinery was bought on 30 June 2022.

7. Investments consist of the following:

Ordinary shares in Khanda Limited

Assume that the correct amount for cash purchases is R290 000. Which of the following alternatives represents the correct amount that must be disclosed as cash paid to suppliers and employees under cash flows from operating activities section in the statement of cash flows for Mnambithi CC for the year ended 31 August 2022?

a.

325 600

b.

325 500

c.

322 900

d.

326 900