The information below relates to questions 1 4

The following information relates to Moano Limited:

Extract of items from the statement of financial position information as at 28 February 2022:

	2022	2021
	R	R
Land and buildings at cost	668 300	397 500
Furniture and equipment at cost	158 300	198 800
Accumulated depreciation: Furniture and equipment	33 900	12 000
Loans to director	187 200	198 800
Trade debtors control	44 300	41 400
Interest receivable	-	6 000
Trade creditors control	26 800	16 400
Mortgage	62 400	167 000
Share capital	587 800	519 000
Retained earnings	800 200	469 200
Revaluation reserve	134 400	94 400
Current tax receivable	20 300	7 200
Inventory	57 800	44 400
Listed investment at fair value	235 000	188 600
Bank (Dr)	36 700	25 200
Interest payable	10 600	7 600
Dividends receivable	17 500	10 600
Dividends payable	8 600	13 800

Extract of items disclosed in the statement of profit or loss and other comprehensive income information for the year ended 28 February 2022:

	R
Gain on financial assets at fair value through profit or loss	19 000
Rental income	17 600
Investment income: Dividend received	9 600
Depreciation (furniture and equipment)	35 400
Loss on sale of furniture and equipment	10 400
Interest expense	9 000
Income tax expense	154 200

Additional information:

1. Dividends paid to shareholders (in cash) during the year amounted to R100 000.

2. Loans to directors are immediately callable

3. The sale or purchases of property, plant and equipment was in cash.

Question 1 Which of the following alternatives represents the correct amount that must be disclosed as profit before tax in the cash generated from operations section according to indirect method in the statement of cash flows of Moano Limited for the year ended 28 February 2022?

a. 402 700

b. 469 200

c. 580 000

d. 440 000

e. 504 000

Question 2

Which of the following alternatives represents the correct amount of total non-cash items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Moano Limited for the year ended 28 February 2022?

a. 26 800

b. 600

c. (600)

d. (26 800)

e. (27 200)

Question 3

Which of the following alternatives represents the correct amount of total separately disclosable items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Moano Limited for the year ended 28 February 2022?

a. 26 800

b. (26 800)

c. 600

d. (600)

e. (27 200)

Question 4

Which of the following alternatives represents the correct amount that must be disclosed as increase (decrease) in trade receivables in the cash generated from operations section of the statement of cash flows of Moano Limited for the year ended 28 February 2022?

a. (2 900)

b. 2 900

c. 2 500

d. 10 400

e. (2 500)