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Summary FAC1602 ASSIGNMENT 4
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FAC 1602 ASSIGNMENT 4 MEMO
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FAC 1602 ASSIGNEMENT 42022 semester two
PREPARED BY NS MTHOMBENI
0710355194 WhatsApp and calls
,The information below relates to questions 1 – 20.
Mnambithi CC has presented you with the following information CC for the preparation of
the statement of cash flows for the previous financial year ended 31 August 2022:
Extract from the statement of financial position as at 31 August 2022:
2022 2021
R R
Land and buildings (at cost) 730 300 470 400
Machinery (at cost) 399 700 365 200
Accumulated depreciation: Machinery 112 100 48 000
Dividend receivable 14 000 65 000
Trade receivables control 69 500 65 600
Distribution to members payable 71 300 100 400
Members’ contributions 1 161 500 995 000
Retained earnings 210 500 73 500
Long-term loan 258 100 182 700
Trade payables control 126 600 69 600
Current tax payable 57 500 41 300
Loans to members 90 700 35 200
Loans from members 109 800 -
Bank 128 500 198 000
Accrued water and electricity expenses 5 300 2 600
Inventory 38 300 24 000
Investment (at fair value) 131 700 -
Prepaid telephone expense 13 700 12 400
Fixed deposit 17 400 13 400
Extract from the statement of profit or loss and other comprehensive income for the
year ended 31 August 2022:
R
Revenue 671 300
Cost of sales 314 000
Investment income: dividend income 11 700
Fair value gain on listed investments 16 500
Interest income on loans to members 11 200
Interest income on loans from members 12 100
Interest expense on long term loans 9 700
Income tax expense 85 300
Loss on sale of machinery 6 400
Office expenses 16 200
, Repairs and maintenance 19 600
Telephone expenses 21 600
Water and electricity 36 500
Depreciation on machinery 64 200
Additional information
1. Interest on loans advanced to and received from members is capitalised. All loans to
members are immediately callable whilst the total amount owing to members is payable on
31 August 2024.
2. Improvements to land and buildings were carried out during the year.
3. All inventories are purchased and sold on credit.
4. Cash flows from operating activities are presented using the direct method
5. Profit distribution to members paid amounted to R30 000.
6. Machinery with a cost price of R21 000 and accumulated depreciation of R8 800 was
sold for cash. A replacement machinery was bought on 30 June 2022.
7. Investments consist of the following:
· Ordinary shares in Khanda Limited
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 Mnambithi CC for the year ended 31 August
2022?
a.
806 400
b.
536 200
c.
667 400
d.
671 300
Clear my choice
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