The following information was extracted from the accounting records of Mode Ltd for the
financial year ended 30 June 2022.
Extract from: Statement of Profit or loss and other comprehensive income
of Mode Ltd for the year ended 30 June 2022
Gross profit : 1 440 000
Dividends received: 43 000
Profit on sale of machine: 75 000
Depreciation : (15 000)
Interest expense: (180 000)
Distribution, administration and other expenses: (403 000)
Taxation: (420 000)
Profit for the year after taxation: 540 000
Extract from: Statement of financial position of Mode Ltd as at 30 June 2022:
ASSETS 30 June 2022 30 June 2021
Land and buildings 925 000 890 000
Machinery at carrying amount 875 000 250 000
Investments 235 000 385 000
Inventory 170 000 480 000
Trade debtors 140 000 400 000
Receiver of revenue – income tax 10 000 Nil
Bank balance 30 000 15 000
Total assets 2 385 000 2 420 000
EQUITY AND LIABILITIES
EQUITY 1 565 000 940 000
Ordinary share capital 745 000 480 000
Retained earnings 820 000 460 000
LIABILITIES 820 000 1 480 000
Long term Borrowings 750 000 1 050 000
Trade creditors 60 000 352 000
Receiver of revenue – income tax Nil 43 000
Shareholders for dividends 10 000 35 000
Total equity and liabilities 2 385 000 2 420 000
Additional information:
1. Shares were issued for cash during the year.
2. Dividends of R180 000 were declared during the current financial year.
3. On 31 October, machinery with a carrying amount of R110 000 was sold for cash. A
replacement machine as well as additional machinery was purchased for cash.
4. No long term borrowings were made during the year.
5. Investments were sold during the year. No new investments were purchased.
Required:
Take all the above information into account and prepare the statement of cash flows for
Mode Ltd for the year ended 30 June 2022. Use the indirect method. Your answer must
comply with the International Financial Reporting Standards (IFRS) appropriate to this type
of business.
Show all workings. Round off all workings to the nearest Rand.
The following information was extracted from the accounting records of Mode Ltd for the
financial year ended 30 June 2022.
Extract from: Statement of Profit or loss and other comprehensive income
of Mode Ltd for the year ended 30 June 2022
Gross profit : 1 440 000
Dividends received: 43 000
Profit on sale of machine: 75 000
Depreciation : (15 000)
Interest expense: (180 000)
Distribution, administration and other expenses: (403 000)
Taxation: (420 000)
Profit for the year after taxation: 540 000
Extract from: Statement of financial position of Mode Ltd as at 30 June 2022:
ASSETS 30 June 2022 30 June 2021
Land and buildings 925 000 890 000
Machinery at carrying amount 875 000 250 000
Investments 235 000 385 000
Inventory 170 000 480 000
Trade debtors 140 000 400 000
Receiver of revenue – income tax 10 000 Nil
Bank balance 30 000 15 000
Total assets 2 385 000 2 420 000
EQUITY AND LIABILITIES
EQUITY 1 565 000 940 000
Ordinary share capital 745 000 480 000
Retained earnings 820 000 460 000
LIABILITIES 820 000 1 480 000
Long term Borrowings 750 000 1 050 000
Trade creditors 60 000 352 000
Receiver of revenue – income tax Nil 43 000
Shareholders for dividends 10 000 35 000
Total equity and liabilities 2 385 000 2 420 000
Additional information:
1. Shares were issued for cash during the year.
2. Dividends of R180 000 were declared during the current financial year.
3. On 31 October, machinery with a carrying amount of R110 000 was sold for cash. A
replacement machine as well as additional machinery was purchased for cash.
4. No long term borrowings were made during the year.
5. Investments were sold during the year. No new investments were purchased.
Required:
Take all the above information into account and prepare the statement of cash flows for
Mode Ltd for the year ended 30 June 2022. Use the indirect method. Your answer must
comply with the International Financial Reporting Standards (IFRS) appropriate to this type
of business.
Show all workings. Round off all workings to the nearest Rand.