Use this following information to answer Question 27 - 38. Please ensure you copy out the information before proceeding to the next question.

Cherokee (Pty) Ltd has the summarised statement of profit or loss for the year to 30 April 2018 and the statement of financial position as at that date, with comparative figures for 2017, for Pandu plc are shown below:

Statements of profit or loss (summarised) for the year to 30 April 2018:

	2018	2017
	N$000	N$000
Gross profit	3,046	2,364
less: Operating costs	(2,578)	(2,044)
Profit before interest & taxation	468	320
less: Interest payable	(65)	(54)
Profit before taxation	403	266
less: Taxation	(97)	(62)
Profit for the year	306	204

Statements of financial position as at 30 April 2018

		2018	2017
	Notes	N$000	N$000
Assets
Non-current assets		3,263	2,759
Property, plant and equipment	i-v	3,263	2,759
Current assets		1,194	928
Inventory		387	321
Trade receivables		754	607
Bank		53	-
Total assets		4,457	3,687
Equity and liabilities
Equity		2,702	2,141
Ordinary share capital (N$0.50 each)		750	650
Share premium		1,250	1,050
Retained earnings		702	441
Non-current liabilities		1,200	1,000
6% debentures		1,200	1,000
Current liabilities		555	546
Trade payables		438	387
Current tax payable		102	66
Bank overdraft		-	84
Accrued interest		15	9
Total equity and liabilities		4,457	3,687

Notes

i) Non-current assets property, plant and equipment, balances at 30 April 2017 were:

	N$000
Cost or valuation	4 777
Property	2 300
Plant	1 400
Equipment	1 077
Depreciation	(2 018)
Property	350
Plant	800
Equipment	868
Net book value	2 759

ii) Equipment for N$1 142 000 was purchased during the year.

iii) Equipment that had cost the company N$240 000 was sold in February 2018 for a loss of N$12 000. The net book value of the equipment when sold was N$96 000

iv) Property is depreciated 5% on a straight line basis.

v) Depreciation for the year was N$200 000 and N$227 000 for plant and equipment respectively.

1.Determine the amount of tax to be included in the calculation of cash generated from operations.

2.Calculate the cash received for the sale of equipment to be included in net cash from investing activities.

3.Determine the treatment for the loss on disposal of equipment.

4.Calculate the interest paid for the year?

5.Calculate and determine the effect of ordinary share issue.

6.What is the dividend declared and paid for the year ended 30 April 2018?

Which of the following would be included in a cash budget

a.Dividends

b.Patent amortization

c.Depreciation charges

d.Good will

Dividends

b.

Patent amortization

c.

d.

Depreciation charges

e.

Good will