Nestled in the heart of the Klein Karoo, Western Cape, PlayNow CC is a
close corporation in the business of supplying educational toys to Early
Childhood Development (ECD) centres across the region. Based
in Calitzdorp, the company is owned by two members with backgrounds in
education and a shared passion for fostering early childhood development.
Their mission is to enrich the learning environments of young children by
providing high-quality, developmentally appropriate toys that support cognitive,
social, and emotional growth.
The following information, which relates to PlayNow CC, is presented to you
OSCAR THE TUTOR
for the preparation of the statement of cash flows for the financial year
oscardiura@gmail.com
+27737560989 ended 31 August 204.
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA
tutorials
Extract from the statement of financial position as at 31 August 2024:
2024 2023
R R
Loans to members 191,400 63,400
Loans from members 251,500 36,500
Accrued expense (marketing expenses) 12,600 18,400
Current tax payable 97,900 77,500
Distribution to members payable 152,600 201,500
Trade payables control 290,000 152,900
Inventory 93,600 51,100
Trade receivables control 151,500 178,000
Prepayments (security expense) 35,900 28,800
Accrued income (rental) 11,400 11,500
Retained earnings 414,300 136,000
Members’ contributions 2,010,900 1,702,100
Long-term loan 552,600 368,300
Bank 371,100 570,000
Machinery (at cost) 990,900 874,200
Accumulated depreciation: Machinery 244,200 130,000
Land and buildings (at cost) 1,969,600 1,226,400
Investments 380,200 -
Dividend receivable 34,400 155,500
Extract from the statement of profit or loss and other comprehensive
income for the year ended 31 August 2024:
R
Profit on sale of machinery 15,300
Cost of sales 777,200
Depreciation on machinery 147,400
Fair value loss on listed investments 31,400
Income tax expense 209,600
, Interest expense on loans from members 29,600
Interest income on loans to members 24,200
Investment income: dividend income 22,500
Interest expense on long term loans 22,500
Repairs and maintenance 51,200
Telephone expenses 43,300
Other operating expenses 33,300
Revenue 1,554,900
Water and electricity 95,600
Rental income 71,900
Additional information
1. Cash flows from operating activities are presented using the direct
method.
2. Machinery with a cost of R32,400 and accumulated depreciation of
R13,500 was sold for cash. Replacement machinery was acquired on 31
July 2024.
3. All inventory purchases and sales are conducted on credit.
4. Additional contributions from members included vacant land valued at
R182,200.
5. Investments consist of the following:
· R102,000 fixed deposit at Garden Bank (maturing on 30 June 2027)
· 26,000 ordinary shares in Karoo Limited
6. Profit distribution to members for the financial year amounted to
R142,000.
7. Interest on loans provided to and received from members is capitalized.
All member loans are immediately callable, while the total amount owed to
members is due on 31 August 2027.
With regards to PlayNow CC, complete the amounts in the EXTRACT of:
The statement of cash flows for the year ended 31 August 2024.
Instructions:
1. Round off all your answers to the nearest rand (eg: 50.56 = 51)
2. Don’t use any special characters (&) and don’t use bold in your answer. It
will be marked incorrect.
3. Do not use any abbreviations.
4. Do not use brackets, i.e. (50), for negative amounts. Instead use “–“, i.e. –
50, for all negative amounts.
This is correct = –50
This is not correct = (50)
OSCAR THE TUTOR 5. Do not type calculations in the allocated fields. Only input the final
oscardiura@gmail.com answer/amount you would have calculated.
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA
tutorials
, PLAYNOW CC
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST
2024
R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipt from customers 1653400
Cash paid to suppliers and employees -918900
Cash generated from operations Xxx xxx
(22500+155500-34400) Dividends received 143600
Interest paid -22500
Income tax paid -189200
(209600+77500-97900)
142000+201500-152600 Distribution to members paid -190900
380200-102000 Acquisition of listed investment -278200
Proceeds from loans from members 0
Acquisition of fixed deposit 0
Additional loans advanced to member -103800
24200+63400-191400
Net cash from operating activities Xxx xxx
CASH FLOWS FROM INVESTING ACTIVITIES
Investments in property, plant and equipment to expand operating capacity
1226400-1969600 Improvement of land and buildings -743200
Investments in property, plant and equipment to maintain operating capacity
-(990900-(874200-32400)) Additions to machinery -149100
Proceeds on sale of machinery 34200
(32400-135000)+15300
Acquisition of fixed deposit -182200
102000
102000
Net cash used in investing activities Xxx xxx
CASH FLOWS FROM FINANCING ACTIVITIES
2010900-1702100 Proceeds from members’ contributions 308800
