100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
FAC1602 ASSESSMENT 4 SEMESTER 1 2024. SolaMin CC is a profitable business in the maintenance of solar systems for mines in Ermelo, Mpumalanga. The CC has presented you with the following information for the preparation of the statement of cash flows fo£2.27
Add to cart
Elementary Financial Accounting and Reporting - FA (FAC1602)
Exam (elaborations)
FAC1602 ASSESSMENT 4 SEMESTER 1 2024. SolaMin CC is a profitable business in the maintenance of solar systems for mines in Ermelo, Mpumalanga. The CC has presented you with the following information for the preparation of the statement of cash flows fo
132 views 5 purchases
Module
Elementary Financial Accounting and Reporting - FA (FAC1602)
Institution
University Of South Africa (Unisa)
FAC1602 ASSESSMENT 4 SEMESTER 1 2024.
SolaMin CC is a profitable business in the maintenance of solar systems for mines in Ermelo, Mpumalanga. The CC has presented you with the following information for the preparation of the statement of cash flows for the previous financial year ended 31 Aug...
Elementary Financial Accounting and Reporting - FA (FAC1602)
All documents for this subject (7)
Seller
Follow
BMZAcademy
Reviews received
Content preview
BMZ ACADEMY
BMZ Academy
CONTACT @ 061 262 1185/068 053 8213/0717513144
BMZ ACADEMY 0612621185/ 0717513144/ 068 053 8213
,Time left 2:56:42
Question 1
Not yet answered
Marked out of 5.00
Flag question
Question text
This information relates to the 24 questions below:
SolaMin CC is a profitable business in the maintenance of solar systems for mines in Ermelo,
Mpumalanga. The CC has presented you with the following information for the preparation of the
statement of cash flows for the previous financial year ended 31 August 2023:
Extract from the statement of financial position as at 31 August 2023:
2023 2022
R R
Long-term loan 323,800 225,200
SARS ⏤ current tax payable 72,200 51,000
Trade payables control 158,900 85,900
Loans from members 137,800 14,200
Accrued water and electricity expenses 7,000 3,400
Distribution to members payable 92,700 128,300
Retained earnings 273,600 94,000
Members’ contributions 1,828,600 1,681,600
Fixed deposit 25,100 12,800
Vehicles at cost 147,000 -
Equipment (at cost) 695,700 617,300
Land and buildings 1,051,700 795,100
Accumulated depreciation: equipment 107,800 38,100
Loans to members 87,200 28,000
Trade receivables control 66,900 52,000
Investment (at fair value) 277,200 -
Inventory 150,300 85,900
Prepaid security expense 53,900 44,500
Dividend receivable 55,100 232,300
Bank 504,000 707,500
Extract from the statement of profit or loss and other comprehensive income for the year
ended 31 August 2023:
R
Revenue ⏤ sale of maintenance parts 1,701,600
, Revenue ⏤ maintenance services 1,013,800
Cost of sales 935,800
Travel expenses 32,100
Repairs and maintenance expenses 38,900
Other operating expeses 266,000
Water and electricity 108,800
Depreciation on equipment 191,400
Security expenses 64,400
Profit on sale of equipment 19,100
Interest income on loans to members 11,000
Interest expense on loans from members 24,000
Interest expense on long term loans 19,300
Investment income: dividend income 23,200
Fair value gain on listed investments 32,700
Income tax expense 168,900
Additional information
1. The company adopts the direct method for presenting cash flows from operating activities.
2. All inventory necessary for solar system maintenance—ranging from spare parts to entire solar
panels—is procured and sold on credit terms.
3. This year, profit distributions totalling R194,000 were declared to members, reflecting the
company's profitability and its commitment to returning value to its investors.
4. Over the financial year, significant refurbishments were made to the company’s operational
facilities, including the storage building for solar components.
5. Interest on loans given to and obtained from members is capitalised. All loans to members
are immediately callable, while the total amount due to partners is payable on 30 June 2026.
6. During the year, equipment essential for maintaining solar systems—bought originally at R19,000
and with accumulated depreciation, on the date of sale, of R7,000 — was sold as part of the
company’s asset improvement strategy. The proceeds were reinvested in acquiring new, more
efficient and technologically advanced equipment on 30 June 2023. This new machinery is expected
to enhance the efficiency of maintenance operations and support the company’s growth in the solar
maintenance sector.
7. The company maintains a strategic investment in 11,000 ordinary shares of Ermelo Energy
Resources Ltd, a move that aligns with its core business by investing in a company that is also
involved in the renewable energy sector.
Which of the following alternatives represents the correct amount that must be disclosed as cash
receipts from customers under cash flows from operating activities section in the statement of cash
flows for SolaMin CC for the year ended 31 August 2023?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BMZAcademy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.27. You're not tied to anything after your purchase.
