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REQUIRED Use the information provided below to prepare the Cash Flow Statement of Umhlal Limited for the year ended 31 December 2020 UMHLALI LIMITED INFORMATION
REQUIRED Use the information provided below to prepare the Cash Flow Statement of Umhlal Limited for the year ended 31 December 2020 UMHLALI LIMITED INFORMATION The following Information was extracted from the records of Umhlali Limited for the past two years STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: 2020 (R) Sales 1856 000 Cost of sales (1 280 000) Gross profit 576 000 Operating expenses (291 200) Depreciation 30 000 Other operating expenses 261 200 Operating profil 284 800 Interest on mortgage loan 124000) Profit before tax 250 800 Company tax (90240) Profit after tax 170 560 2019 (R) 1 200 000 (750 000) 450 000 Q12000) 26000 186 000 238 000 (72 000) 166 000 (58 100) 107 900 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 Cash flows from operating activities Profit before interest and tax/Operating profit Adjustments to convert to cash from operations Add: Depreciation Profit before working capital changes Working capital changes 2019 (R) 2444 000 2 444 000 336 000 250 000 64 000 22 000 2 780 000 Cash generated from operations Interest paid Dividends paid Company tax paid Information extracted from the Statement of Financial Position for the past two years: STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2020 (R) ASSETS Non-current assets 2464 160 Fibed assets 2464 160 Current assets 356 000 Inventories (all Trading inventory) 120 000 Accounts receivable 40 000 Cash & cash equivalents 196 000 2 820 160 EQUITY AND LIABILITIES Equity 2437560 Ordinary share capital 2 180 000 Retained income 257 560 Non-current liabilities 200 000 Mortgage loan (12%p.a.) 200 000 Current liabilities 182 600 Accounts payable 98000 SARS (Company tax) 8600 Shareholders for dividends 76000 2 820 160 Cash flows from investing activities Cash flows from financing activities 1980 000 1 760 000 220 000 600 000 600 000 200 000 138 000 6000 56 000 2 780 000 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Additional information The issue price of all the shares is R10 each New shares were issued on the first day of the financial year Interim and final dividends for the year ended 31 December 2020 amounted to R133 000 Fixed assets were sold at carrying (book) value during the year for R144 000. Fived assets were also purchased
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