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.

Question 10

Question text

Which of the following alternatives represents the correct amount that must be disclosed as additions to property, plant and equipment under investment in property plant and equipment to maintain operating capacity in the cash flows from investing activities section according to direct method in the statement cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

0

b.

(277,500)

c.

(327,700)

d.

327,700

e.

277,500

Question 11

Question text

Which of the following alternatives represents the correct amount that must be disclosed as proceeds from (repayment of) long-term loans in the cash flows from financing activities section according to direct method in the statement cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

131,300

b.

130,300

c.

(130,300)

d.

130,000

e.

(131,300)

Question 12

Not yet answered

Marked out of 3.00

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Question text

Which of the following alternatives represents the correct amount that must be disclosed as proceeds from issue of shares in the cash flows from operating activities section according to direct method in the statement cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

(83,300)

b.

84,300

c.

83,300

d.

0

e.

(84,300)

Question 13

Question text

Which of the following alternatives represents the correct amount that must be disclosed as loans advanced to (received from) directors of the company in the cash flows from operating activities section of the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

6,100

b.

(6,100)

c.

0

d.

16,200

e.

(16,200)

Clear my choice

Question 14

Question text

Which of the following alternatives represents the correct amount that must be disclosed as dividend received in the cash flows from investing activities section of the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

3,300

b.

(23,800)

c.

0

d.

(3,300)

e.

23,800

Question 15

Question text

Which of the following alternatives represents the correct amount that must be disclosed as proceeds from issue of shares in the cash flows from financing activities section according to direct method in the statement cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

(83,300)

b.

0

c.

83,300

d.

(84,300)

e.

84,300

Question 16

Question text

Which of the following alternatives represents the correct amount that must be disclosed as increase (decrease) in inventory in the cash generated from operations section of the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

(15,600)

b.

(51,900)

c.

51,900

d.

(67,500)

e.

15,600

Question 17

Question text

Which of the following statements is correct relating to preparation of statement of cash flows?

a.

Partnerships are not allowed to prepare a statement of cash flows.

b.

Statement of cash flows must only be prepared using the indirect method.

c.

Statement of cash flows is prepared according to cash basis of accounting.

d.

Statement of cash flows shows only the investing activities of a business.

e.

Statement of cash flows is prepared according to the accrual basis of accounting.

Question 18

Question text

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 Mhlabavuleka Limited for the year ended 28 February 2023?

a.

(13,100)

b.

(3,400)

c.

3,400

d.

13,100

e.

13,000

Question 19

Question text

Which of the following statements is incorrect relating to preparation of statement of cash flows?

a.

Loss on sale of equipment is a non-cash item.

b.

Interest paid is a separately disclosable item.

c.

Dividends received is a separately disclosable item.

d.

Depreciation is a non-cash item.

e.

Capitalization share issue is regarded as a cash item.

Question 20

Question text

Which of the following alternatives represents the correct amount that must be disclosed as increase (decrease) in trade payables in the cash generated from operations section of the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?

a.

13,000

b.

(3,400)

c.

(13,100)

d.

3,400

e.

13,100