The information below relates to questions below:

You have been presented with the following information to assist in the preparation of the statement of cash flows for Mhlabavuleka Limited:

Extract of items from the statement of financial position information as at 28 February 2023:

2023 2022

R R

Dividends receivable 20,500 12,500

Listed investment at fair value 274,200 220,000

Current tax receivable 23,800 8,500

Inventory 67,500 51,900

Interest receivable - 7,100

Trade debtors control 52,700 49,300

Bank (Dr) 43,800 30,000

Loans to director 252,500 236,300

Machinery at cost 191,700 240,600

Accumulated depreciation: Machinery 41,100 14,600

Land and buildings 808,800 481,100

Share capital 711,300 628,000

Retained earnings 968,400 567,900

Revaluation reserve 168,700 118,500

Mortgage 78,300 209,600

Dividends payable 10,900 17,400

Trade creditors control 33,800 20,700

Interest payable 13,400 9,700

Extract of items disclosed in the statement of profit or loss and other comprehensive income information for the year ended 28 February 2023:

R

Profit on sale of machinery 12,300

Interest income: loans to directors 10,100

Investment income: Dividend received 11,300

Rental income 21,800

Gain on financial assets at fair value through profit or loss 23,500

Interest expense 11,100

Depreciation (machinery) 45,400

Income tax expense 197,000

Additional information

1. The company presents the statement of cash flows using the indirect method.

2. Mhlabavuleka Limited's net cash flow position deteriorated significantly towards the end of the financial year and as a result, only R88 000 was paid as dividends to shareholders (in cash).

3. To aid the cash flow position, the company sold property, plant and equipment in cash.

4. The purchases of property, plant and equipment were made from second-hand dealers in cash.

5. According to the policy of the company, all the loans advanced to the directors are immediately callable and interest charged on these loans is capitalised.