Here are the financial statements of Karriem Manufacturing Company Ltd:

Additional information:

1. A new machine was purchased to replace an old one during the current financial year.

– The old machine had originally cost R12 000 and was sold for R3 200.

– At the date of the sale accumulated depreciation amounting to R7 600 was provided for.

2. On 1 June 20x9, land and buildings were revalued to R280 000.

3. Included in payables are amounts owing to the SARS:

4. Interest paid during the year amounted to R28 000.

5. Dividends declared amounted to R20 000.

You are required to:

Prepare a statement of cash flows for the year ended 31 December 20x9.

Transcribed Image Text:

Karriem Manufacturing Company Ltd STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20x9 Notes 20x9 20x8 ASSETS Non-current assets Land and buildings at valuation (20x8- cost) Plant and machinery at cost Accumulated depreciation: plant and machinery Current assets Inventories Accounts receivable Cash and cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES Capital and reserves Ordinary share capital Non-distributable reserve Distributable reserve: retained earnings Non-current liabilities Long-term borrowings Current liabilities Accounts payable Bank overdraft Shareholders for dividends TOTAL EQUITY AND LIABILITIES 590 000 00 280 000 00 380 000 00 (70 000 00) 440 000 00 153 600 00 216 000 00 70 400 00 1 030 000 00 760 000 00 460 000 00 40 000 00 260 000 00 40 000 00 40 000 00 230 000 00 210 000 00 0100 20 000 00 1 030 000 00 532 000 00 240 000 00 348 000 00 (56 000 00) 344 000 00 154 800 00 189 200 00 000 876 000 00 500 000 00 300 000 00 wwwww 0 00 200 000 00 80 000 00 80 000 00 296 000 00 186 400 00 109 600 00 0 00 876 000 00