Additional information: 1. Shares were issued for cash during the year. 2. Dividends of R180 000 were declared during the current financial year. 3. On 31 October, machinery with a carrying amount of R110 000 was sold for cash. A replacement machine as well as additional machinery was purchased for cash. 4. No long term borrowings were made during the year. 5. Investments were sold during the year. No new investments were purchased. Required: Take all the above information into account and prepare the statement of cash flows for Mode Ltd for the year ended 30 June 2022. Use the indirect method. Your answer must comply with the International Financial Reporting Standards (IFRS) appropriate to this type of business. Show all workings. Round off all workings to the nearest Rand.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Extract from: Statement of Profit or loss and other comprehensive income
of Mode Ltd for the year ended 30 June 2022
Gross profit
Dividends received
Profit on sale of machine
Depreciation
Interest expense
Distribution, administration and other expenses
Taxation
Profit for the year after taxation
Land and buildings
Machinery at carrying amount
Investments
Inventory
Trade debtors
Receiver of revenue - income tax
Bank balance
Total assets
Extract from: Statement of financial position of Mode Ltd as at 30 June 2022:
30 June 2022
ASSETS
R
EQUITY AND LIABILITIES
EQUITY
Ordinary share capital
Retained earnings
LIABILITIES
Long term Borrowings
Trade creditors
Receiver of revenue - income tax
Shareholders for dividends
Total equity and liabilities
925 000
875 000
235 000
170 000
140 000
10 000
30
000
2 385 000
1565 000
745 000
820 000
820 000
750 000
60 000
Nil
10 000
R
1440 000
43 000
75 000
2 385 000
(15 000)
(180 000)
(403 000)
(420 000)
540 000
30 June 2021
R
890 000
250 000
385 000
480 000
400 000
Nil
15 000
2 420 000
940 000
480 000
460 000
1 480 000
1 050 000
352 000
43 000
35 000
2 420 000
Transcribed Image Text:Extract from: Statement of Profit or loss and other comprehensive income of Mode Ltd for the year ended 30 June 2022 Gross profit Dividends received Profit on sale of machine Depreciation Interest expense Distribution, administration and other expenses Taxation Profit for the year after taxation Land and buildings Machinery at carrying amount Investments Inventory Trade debtors Receiver of revenue - income tax Bank balance Total assets Extract from: Statement of financial position of Mode Ltd as at 30 June 2022: 30 June 2022 ASSETS R EQUITY AND LIABILITIES EQUITY Ordinary share capital Retained earnings LIABILITIES Long term Borrowings Trade creditors Receiver of revenue - income tax Shareholders for dividends Total equity and liabilities 925 000 875 000 235 000 170 000 140 000 10 000 30 000 2 385 000 1565 000 745 000 820 000 820 000 750 000 60 000 Nil 10 000 R 1440 000 43 000 75 000 2 385 000 (15 000) (180 000) (403 000) (420 000) 540 000 30 June 2021 R 890 000 250 000 385 000 480 000 400 000 Nil 15 000 2 420 000 940 000 480 000 460 000 1 480 000 1 050 000 352 000 43 000 35 000 2 420 000
Additional information:
1. Shares were issued for cash during the year.
2. Dividends of R180 000 were declared during the current financial year.
3. On 31 October, machinery with a carrying amount of R110 000 was sold for cash. A
replacement machine as well as additional machinery was purchased for cash.
4. No long term borrowings were made during the year.
5. Investments were sold during the year. No new investments were purchased.
Required:
Take all the above information into account and prepare the statement of cash flows for
Mode Ltd for the year ended 30 June 2022. Use the indirect method. Your answer must
comply with the International Financial Reporting Standards (IFRS) appropriate to this type
of business.
Show all workings. Round off all workings to the nearest Rand.
Transcribed Image Text:Additional information: 1. Shares were issued for cash during the year. 2. Dividends of R180 000 were declared during the current financial year. 3. On 31 October, machinery with a carrying amount of R110 000 was sold for cash. A replacement machine as well as additional machinery was purchased for cash. 4. No long term borrowings were made during the year. 5. Investments were sold during the year. No new investments were purchased. Required: Take all the above information into account and prepare the statement of cash flows for Mode Ltd for the year ended 30 June 2022. Use the indirect method. Your answer must comply with the International Financial Reporting Standards (IFRS) appropriate to this type of business. Show all workings. Round off all workings to the nearest Rand.
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