Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This information relates to the 2 4 questions below: SolaMin CC is a profitable business in the maintenance of solar systems for mines in Ermelo,

This information relates to the 24 questions below:
SolaMin CC is a profitable business in the maintenance of solar systems for mines in Ermelo, Mpumalanga. The CC has presented you
with the following information for the preparation of the statement of cash flows for the previous financial year ended 31 August 2023 :
Extract from the statement of financial position as at 31 August 2023: Extract from the statement of profit or loss and other comprehensive income for the year ended 31 August 2023:
Additional information
The company adopts the direct method for presenting cash flows from operating activities.
All inventory necessary for solar system maintenance-ranging from spare parts to entire solar panels-is This information relates to the 24 questions below: SolaMin CC is a profitable business in the maintenance of solar systems for mines in Ermelo, Mpumalanga. The CC has presented you with the following information for the preparation of the statement of cash flows for the previous financial year ended 31 August 2023: Extract from the statement of financial position as at 31 August 2023: 20232022 R R Long-term loan 323,800225,200 SARS current tax payable 72,20051,000 Trade payables control 158,90085,900 Loans from members 137,80014,200 Accrued water and electricity expenses 7,0003,400 Distribution to members payable 92,700128,300 Revaluation reserve 18,600- Retained earnings 273,60094,000 Members contributions 1,828,6001,681,600 Fixed deposit 25,10012,800 Vehicles at cost 147,000- Equipment (at cost)695,700617,300 Land and buildings 1,051,700795,100 Accumulated depreciation: equipment 107,80038,100 Loans to members 87,20028,000 Trade receivables control 66,90052,000 Investment (at fair value)277,200- Inventory 150,30085,900 Prepaid security expense 53,90044,500 Dividend receivable 55,100232,300 Bank 504,000707,500 Extract from the statement of profit or loss and other comprehensive income for the year ended 31 August 2023: R Revenue sale of maintenance parts 1,701,600 Revenue maintenance services 1,013,800 Cost of sales 935,800 Travel expenses 32,100 Repairs and maintenance expenses 38,900 Other operating expenses 266,000 Water and electricity 108,800 Depreciation on equipment 191,400 Security expenses 64,400 Profit on sale of equipment 19,100 Interest income on loans to members 11,000 Interest expense on loans from members 24,000 Interest expense on long term loans 19,300 Investment income: dividend income 23,200 Income tax expense 168,900 Additional information 1. The company adopts the direct method for presenting cash flows from operating activities. 3. This year, profit distributions totalling R194,000 were declared to members, reflecting the company's profitability and its commitment to returning value to its investors. 5. Interest on loans given to and obtained from members is capitalised. All loans to members are immediately callable, while the total amount due to partners is payable on 30 June 2026.9. On 31 August 2023, the finance managed discovered that the maintenance team had granted one of the customers a discount of R2,500 on a maintenance job done on the day. This is yet to be recorded by the finance team. 10. One of the members contributed a second-hand bakkie to the CC for use by the maintenance team to carry spare parts when travelling to different client sites. No other contributions were made by the members to the CC. Which of the following alternatives represents the correct amount that must be disclosed as additional loans advanced to members under cash flows from investing activities section in the statement of cash flows for SolaMin CC for the year ended 31 August 2023? a.-R48,200 b.-R59,200 c. R59,200 d. R0 Assume that the correct amount for purchases is R600000. 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 SolaMin CC for the year ended 31 August 2023? a. R1,043,000 b. R1,046,600 c. R1,037,200 d. R.978,600 Which of the following alternatives represents the correct amount that must be disclosed as interest paid under cash flows from financing activities section in the statement of cash flows for SolaMin CC for the year ended 31 August 2023? a. R0 b.-R15,700 c.-R19,300 d. R19,300 Which of the following alternatives represents the correct amount that must be disclosed as distributions to members paid under cash flows from operating activities section in the statement of cash flows for SolaMin CC for the year ended 31 August 2023? a.-R229,600 b.-R192,000 c.-R250,000 d.-R29,000Question text Which of the following alternatives represents the correct amount that must be disclosed as income tax paid under cash flows from operating activities section in the statement of cash flows for SolaMin CC for the year ended 31 August 2023? a.-R219,900 b.-R168,900 c.-R45,700 d.-R147,700
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISO IEC 27001 Lead Auditor Mastering ISMS Audit Techniques

Authors: Dr Tamuka Maziriri

1st Edition

107903160X, 978-1079031607

More Books

Students also viewed these Accounting questions