Reference no: EM132656743
Question - The following information was obtained from the accounting records of First Ltd: Summarised financial position for year ended 31 December.
ASSETS 2019 2018
Land and Building R104 865 R95 470
Investments Nil R1 100
Machinery at carrying amount R6 500 R1 600
Cost R8 700 R5 400
Accumulated depreciation (2 200) (3 800)
Inventories R12 000 R9 000
Trade debtors R 10 205 R 30 700
Cash at bank R13 500 Nil
TOTAL ASSETS R 147 070 R 137 870
Equity & Liabilities
Equity R 100 070 R 78 470
Ordinary share capital R 85 000 R 68 000
Retained earnings R 15 070 R 10 470
Liabilities R 47 000 R 59 400
Long term loan R 20 000 R 30 000
Bank overdraft Nil R 700
Trade creditors R 6 600 R 9 200
Income tax payable R 2000 R 4 100
Dividends payable R 18 400 R 15 400
TOTAL EQUITY AND LIABILITIES R 147 070 R 147 870
Additional information: The following was extracted from the statement of comprehensive income and statement of changes in equity for financial year ended 31 December 2019.
Income: R
Profit on sale of land and buildings R 7000
Profit on sale of machinery R 300
Expenses
Depreciation R 1 000
Administration expenses R 29 730
Selling expenses R 12 005
Loss on sale of investment R 500
Taxation expense R 18 000
Profit for the year R 23 000
Appropriation
Dividends declared R 18 400
1. The investments of the company were sold for R600 cash
2. A portion of the land and buildings with a cost price of R 11 000 was sold during the year for R 18 000 cash. Additional land was purchased for R20 395 cash.
3. Machinery to the value of R 6 400 was purchased for cash. Machinery with a carrying amount of R 500 was sold at a profit of R 300
4. The company paid issued new ordinary shares during the year.
Required - Draft the statement of cash flows for the year ended 31 December 2019 method in compliance with international financial reporting standards in as much as the given information. The indirect method is in use. Show all workings.