Exam (elaborations)

FAC1601 Assignment 4 (DETAILED ANSWERS) Semester 2 2024

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Course
Financial Accounting and Reporting

Institution
University Of South Africa

Book
Financial Accounting and Reporting

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fac1601 assignment 4 detailed answers

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FAC1601
ASSIGNMENT 4 SEMESTER 2 2024

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Question 1 The information below relates to questions below:
Answer saved You have been presented with the following information to assist in the preparation of the statement of cash flo
Marked out of for Mhlabavuleka Limited:
7.00

Extract of items from the statement of financial position information as at 28 February 2023:
2023 2022
R R

Dividends receivable 20,500 12,500
Listed investment at fair value 274,200 220,000
Current tax receivable 23,800 8,500
Inventory 67,500 51,900
Interest receivable - 7,100
Trade debtors control 52,700 49,300
Bank (Dr) 43,800 30,000
Loans to director 252,500 236,300
Machinery at cost 191,700 240,600
Accumulated depreciation: Machinery 41,100 14,600
Land and buildings 808,800 481,100
Share capital 711,300 628,000
Retained earnings 968,400 567,900
Revaluation reserve 168,700 118,500
Mortgage 78,300 209,600
Dividends payable 10,900 17,400
Trade creditors control 33,800 20,700
Interest payable 13,400 9,700

Extract of items disclosed in the statement of profit or loss and other comprehensive income information for
the year ended 28 February 2023:
R
Profit on sale of machinery 12,300
Interest income: loans to directors 10,100
Investment income: Dividend received 11,300 OSCAR
Rental income 21,800 +278447
Gain on financial assets at fair value through profit or loss 23,500 FAC,MA
Interest expense 11,100
TA,MNB
Depreciation (machinery) 45,400
Income tax expense 197,000
FOR EX
Additional information
1. The company presents the statement of cash flows using the indirect method.
2. Mhlabavuleka Limited's net cash flow position deteriorated significantly towards the end of the financial y
as a result, only R88 000 was paid as dividends to shareholders (in cash).
3. To aid the cash flow position, the company sold property, plant and equipment in cash.
4. The purchases of property, plant and equipment were made from second-hand dealers in cash.
5. According to the policy of the company, all the loans advanced to the directors are immediately callable an
interest charged on these loans is capitalised.

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priscillarnqobileduma
Which of the following alternatives represents the correct amount that must be disclosed as profit before tax in
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cash generated from operations section according to indirect method in the statement of cash flows of Mhlabav
Limited for the year ended 28 February 2023?

a. 679,000
OSCAR THE TUTOR
b. 580,000 +27844708483
c. 480,000 FAC,MAC,ECS,DSC,TAX,FIN,INV,QM
d. 482,000 B,
e. 968,400
FOR EXAM PREP CLASSES AND TU
Clear my choice

Question 2 Which of the following alternatives represents the correct amount that must be disclosed as acquisition of listed
Answer saved investments in the cash flows from operating activities section of the statement of cash flows of Mhlabavuleka
Limited for the year ended 28 February 2023?
Marked out of
3.00
a. 30,700
b. 54,200
c. 0
d. (30,700)
e. (54,200)

Clear my choice

Question 3 Which of the following alternatives represents the correct amount that must be disclosed as income tax paid in
Answer saved cash flows from operating activities section of the statement of cash flows of Mhlabavuleka Limited for the yea
ended 28 February 2023?
Marked out of
3.00
a. 197,000
OSCAR THE TUTOR
b. (181,700)
+27844708483
c. (197,000) FAC,MAC,ECS,DSC,TAX,FIN,INV,QMI,BNU ,ST
d. (212,300) B,
e. 181,700
FOR EXAM PREP CLASSES AND TUTORING
Clear my choice

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Question 4 Which of the following alternatives represents the correct amount that must be disclosed as loans advanced to
Answer saved (received from) directors of the company in the cash flows from financing activities section of the statement of
cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?
Marked out of
3.00
a. 6,100
b. 16,200
c. (16,200)
d. 0 OSCAR THE TUTOR
e. (6,100)
+27844708483
FAC,MAC,ECS,DSC,TAX,FIN,INV,QMI,BNU ,STA,M
Clear my choice B,

FOR EXAM PREP CLASSES AND TUTORING
Question 5 Which of the following alternatives represents the correct amount that must be disclosed as additions to prope
Answer saved plant and equipment under investment in property plant and equipment to expand operating capacity in the cas
flows from investing activities section according to direct method in the statement cash flows of Mhlabavuleka
Marked out of
4.00 Limited for the year ended 28 February 2023?

a. 0
b. (327,700)
c. (277,500)
d. 327,700
e. 277,500

Clear my choice

Question 6 Which of the following alternatives represents the correct amount of total separately disclosable items added to
Answer saved (deducted from) profit before tax as part of the adjustments in the cash generated from operations section
according to indirect method in the statement of cash flows of Mhlabavuleka Limited for the year ended 28 Feb
Marked out of
3.00
2023?

a. (200)
b. 10,300
c. (9,600)
d. (10,300)
e. 9,600

Clear my choice

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Question 7 Which of the following alternatives represents the correct amount that must be disclosed as proceeds on sale of
Answer saved property, plant and equipment in the cash flows from investing activities section according to direct method in
statement cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?
Marked out of
8.00
a. 0
b. 42,300
c. (42,300) OSCAR THE TUTOR
d. (30,000)
+27844708483
FAC,MAC,ECS,DSC,TAX,FIN,INV,QMI,BN
e. 30,000
B,
Clear my choice
FOR EXAM PREP CLASSES AND TUTOR

Question 8 Which of the following alternatives represents the correct amount that must be disclosed as interest paid in the
Answer saved flows from operating activities section of the statement of cash flows of Mhlabavuleka Limited for the year end
February 2023?
Marked out of
3.00
a. 11,100
b. (7,400)
c. (20,800)
d. 7,400
e. (11,100)

Clear my choice

Question 9 Which of the following alternatives represents the correct amount of total non-cash items added to (deducted
Answer saved from) profit before tax as part of the adjustments in the cash generated from operations section according to
indirect method in the statement of cash flows of Mhlabavuleka Limited for the year ended 28 February 2023?
Marked out of
4.00
a. 10,300
b. (10,300)
c. (9,600)
d. 9,600
e. 21,900

Clear my choice

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Exam (elaborations)

FAC1601 Assignment 4 (DETAILED ANSWERS) Semester 2 2024

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