Question
The information provided below and prepare the Cash Flow Statement for the year ended 31 December 2022. INFORMATION The following information was extracted from the
The information provided below and prepare the Cash Flow Statement for the year ended 31 December 2022. INFORMATION The following information was extracted from the records of Brumbies Limited:
| STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: | ||
| 2022 (R) | 2021 (R) | |
| Sales | 3 712 000 | 2 400 000 |
| Cost of sales | -2 560 000 | -1 500 000 |
| Gross profit | 1 152 000 | 900 000 |
| Operating expenses | -582 400 | -424 000 |
| Depreciation | 60 000 | 52 000 |
| Other operating expenses | 522 400 | 372 000 |
| Operating profit | 569 600 | 476 000 |
| Interest on mortgage loan | -48 000 | -144 000 |
| Profit before tax | 521 600 | 332 000 |
| Company tax | -180 480 | -116 200 |
| Profit after tax | 341 120 | 215 800 |
| STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: | ||
| 2022 (R) | 2021 (R) | |
| ASSETS | ||
| Non-current assets | 4 928 320 | 4 888 000 |
| Property, plant and equipment | 4 928 320 | 4 888 000 |
| Current assets | 712 000 | 672 000 |
| Inventories (all Trading inventory) | 240 000 | 500 000 |
| Trade and other receivables | 80 000 | 128 000 |
| Cash and cash equivalents | 392 000 | 44 000 |
| 5 640 320 | 5 560 000 |
| EQUITY AND LIABILITIES | ||
| Equity | 4 875 120 | 3 960 000 |
| Ordinary share capital | 4 360 000 | 3 520 000 |
| Retained income | 515 120 | 440 000 |
| Non-current liabilities (Mortgage loan, 12%) | 400 000 | 1 200 000 |
| Current liabilities | 365 200 | 400 000 |
| Trade and other payables | 196 000 | 276 000 |
| Company tax payable | 17 200 | 12 000 |
| Dividends payable | 152 000 | 112 000 |
| 5 640 320 | 5 560 000 |
Additional information:
320 000 shares were in issue at the end of 2021. 60 000 new shares were issued on the first day of the 2022 financial year. Interim and final dividends for the year ended 31 December 2022 amounted to R266 000. Vehicles were sold at carrying (book) value during the year for R288 000. Equipment was purchased at the end of the financial year. All purchases of trading inventory are on credit. Trade and other payables comprise accounts payable only.
Answer Sheet:
| CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 | ||
| Workings (if any) | R | |
| Cash flows from operating activities | ||
| Profit before interest and tax/Operating profit | ||
| Adjustments to convert to cash from operations | ||
| Profit before working capital changes | ||
| Working capital changes | ||
| Cash generated from operations | ||
| Interest paid | ||
| Dividends paid | ||
| Income tax paid | ||
| Cash flows from investing activities | ||
| Cash flows from financing activities | ||
| Cash and cash equivalents at beginning of year | ||
| Cash and cash equivalents at end of year | ||
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