Jetfast ( Pty ) Ltd ( Jetfast ) is a South African wholesaler that sells computers, laptops
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Question:
Jetfast Pty Ltd Jetfast is a South African wholesaler that sells computers, laptops and associated accessories to retailers of similar products. You have been recently appointed as the financial accountant, and you have been provided with the companys financial statements for the year ended December and respectively. Use the information contained therein to answer the
questions that follow:
Statement of Profit or Loss of Jetfast for the year ended December
Rall of the numbers here have at the end
Sales
Cost of sales
Gross profit
Less: Operating expenses
Depreciation
Electricity
Bad debt expense
Rental expense
Stationery expense
Other operating expenses
Operating profit
Interest expense
Profit before tax
Tax
Profit after tax
R R
ASSETS
Noncurrent assets
Property, plant and equipment carrying
amount all numbers below represent on left and on right
Current assets
Inventory
Stationery on hand
Prepaid rental
Accounts receivable
Bank
TOTAL ASSETS
EQUITY AND LIABILITIES
Share capital
Retained earnings
Noncurrent liabilities
Longterm loan
Accounts payable
Accrued expenses: Electricity
Accrued interest
Bank overdraft
TOTAL EQUITY AND LIABILITIES
Required:
Calculate the cash generated from operations for the year ended
December In getting to your answer, prepare the following Taccounts and additional workings:
Accounts receivable
Inventory
Accounts payable
Additional workings in relation to cash paid for suppliers and
Calculate the amount of cash generated or used during the financial year
as it would appear in the Cash Flow Statement for the year ended
December
Hint: you do not need to reconstruct the entire Cash Flow Statement.
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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