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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 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 August :
Extract from the statement of financial position as at August :
R R
Longterm loan
SARS current tax payable
Trade payables control
Loans from members
Accrued water and electricity expenses
Distribution to members payable
Revaluation reserve
Retained earnings
Members contributions
Fixed deposit
Vehicles at cost
Equipment at cost
Land and buildings
Accumulated depreciation: equipment
Loans to members
Trade receivables control
Investment at fair value
Inventory
Prepaid security expense
Dividend receivable
Bank
Extract from the statement of profit or loss and other comprehensive income for the year ended August :
R
Revenue sale of maintenance parts
Revenue maintenance services
Cost of sales
Travel expenses
Repairs and maintenance expenses
Other operating expenses
Water and electricity
Depreciation on equipment
Security expenses
Profit on sale of equipment
Interest income on loans to members
Interest expense on loans from members
Interest expense on long term loans
Investment income: dividend income
Income tax expense
Additional information
The company adopts the direct method for presenting cash flows from operating activities.
All inventory necessary for solar system maintenanceranging from spare parts to entire solar panelsis procured and sold on credit terms.
This year, profit distributions totalling R were declared to members, reflecting the company's profitability and its commitment to returning value to its investors.
Over the financial year, significant refurbishments were made to the companys operational facilities, including the storage building for solar components.
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 June
During the year, equipment essential for maintaining solar systemsbought originally at R and with accumulated depreciation, on the date of sale, of R was sold as part of the companys asset improvement strategy. The proceeds were reinvested in acquiring new, more efficient and technologically advanced equipment on June This new machinery is expected to enhance the efficiency of maintenance operations and support the companys growth in the solar maintenance sector.
The company maintains a strategic investment in ordinary shares of Ermelo Energy Resources Ltd a move that aligns with its core business by investing in a company that is also involved in the renewable energy sector. This investment was acquired at a cost of Rper share and the shares traded at R on August
Land and buildings were appraised by an independent valuer and all the adjustments have been correctly recorded in the financial records of the CC
On August the finance managed discovered that the maintenance team had granted one of the customers a discount of R on a maintenance job done on the day. This is yet to be recorded by the finance team.
One of the members contributed a secondhand 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 dividends received under cash flows from operating activities section in the statement of cash flows for SolaMin CC for the year ended August
a
R
b
R
c
R
d
R
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