$7/10$

$100\%$

QUESTION $4$

$(20$ Marks$)$

REQUIRED

Use the information provided below to prepare the Cash Flow Statement of Vumo Limited for the year ended $31$ December $2024.$

INFORMATION

The information provided below was extracted from the accounting records of Vumo Limited on $31$

December $2024$:

VUMO LIMITED

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED $31$ DECEMBER $2024$

$\backslash$table$[[,$R$],[$Sales$,3396000],[$Gross profit,$1620000],[$Depreciation$,270000],[$Operating profit,$594000],[$Interest expense,$162000],[$Company tax,$116640],[$Profit after tax,$315360]]$

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED $31$ DECEMBER $2024$

Retained

earnings

$\backslash$table$[[$interbst expense,Greter$],[$Company tax,$116$ Eco$],[$Profit after tax,$315360]]$

$\backslash$table$[[$STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED $3$H DECEMEER $2024],[,$Retained earmings$],[,$R$],[$Balance on $01$ January $2024,$$$00,000],[$Profit after tax,$$15360],[$Dividends paid and proposed,$(108000)],[$Balance on $31$ December $2024,1107360]]$

STATEMENT OF FINANCIAL POSITION AS AT $31$ DECEMBER:

$\backslash$table$[[$Assets$,2024($R$),2023($R$)],[$Non$-$current assets,,$],[$Plant and equipment,$2250000,1800000],[$Investments$,126000,144000],[$Current assets,,$],[$Inventories$,774000,738000],[$Accounts receivable,$684000,630000],[$Company tax overpayment to SARS,$9360,0],[$Cash and cash equivalents,$180000,126000],[,4023360,3438000],[$Equity and liabilities,,$],[$Equity$,,],[$Ordinary share capital,$1116000,1116000],[$Retained eamings,$1107360,900000],[$Non$-$current liabilities,,$],[$Long$-$term loan,$216000,126000],[$Current liabilities,,$],[$Accounts payable,$1512000,1177200]]$

$\backslash$table$[[$Dividends payable,$72000,90000],[$Company tax payable,$0,28800],[,4023360,3438000]]$

Note:

Plant and equipment was purchased but there was no disposal of plant and equipment.

A small investment matured during $2024.$

The issue price of the ordinary shares was $200$ cents each. According to information supplied by the Johannesburg Securities Exchange, the shares are currently trading at $400$ cents each.

All purchases and sales of inventory were on credit.

Credit terms from suppliers are $60$ days. Credit terms to debtors are $30$ days.