What the cash generated from operations would have been

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Problem 1: During the year ended 30 June 2018, a company's revaluation reserve increased from R300 000 to R380 000 as a result of a property revaluation. At the start of that financial year, the company's property had been valued at R810 000. Assuming that no property was disposed of during the year, which of the following statements is true?

Select one:

a. The property's revalued amount was R1 190 000.
b. The property's revalued amount was R1 310 000.
c. The property's revalued amount was R890 000.
d. The property's revalued amount was R380 000.

Problem 2: Dessy Ltd made an operating profit of R185 500 after charging depreciation of R31 200. During that year, trade payables increased by R26 600 and inventory increased by R40 300. There was no change to trade receivables. Assuming that no other factors affected it, the cash generated from operations would have been:

Select one:

a. R230 400.
b. R203 000.
c. R149 800.
d. R283 600.

Reference no: EM132889410

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