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 $31$ December $2023$ and $2022,$ respectively. Use the information contained therein to answer the

questions that follow:

Statement of Profit or Loss of Jetfast for the year ended $31$ December $2023$

R$000($all of the numbers here have $\text{'}000$ at the end$)$

Sales $10560$

Cost of sales $4200$

Gross profit $6360$

Less: Operating expenses $3449$

Depreciation $552$

Electricity $78$

Bad debt expense $335$

Rental expense $450$

Stationery expense $54$

Other operating expenses $1980$

Operating profit $2911$

Interest expense $155$

Profit before tax $2756$

Tax $600$

Profit after tax $2156$

$20232022$

R$000$ R$000$

ASSETS

Non$-$current assets

Property, plant and equipment $($carrying

amount$)9880(2023)9025(2022)-$ all numbers below represent $2023$ on left and $2022$ on right

Current assets

Inventory $22301947$

Stationery on hand $1315$

Prepaid rental $7569$

Accounts receivable $33603092$

Bank $2010$

TOTAL ASSETS $1575914148$

EQUITY AND LIABILITIES

Share capital $100009500$

Retained earnings $1989636$

Non$-$current liabilities

Long$-$term loan $20002000$

Accounts payable $16541721$

Accrued expenses: Electricity $2339$

Accrued interest $9386$

Bank overdraft $0166$

TOTAL EQUITY AND LIABILITIES $1575914148$

Required:

$3\mathrm{.}1$ Calculate the cash generated from operations for the year ended

$31$ December $2023.$ 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

$3\mathrm{.}2$ 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

$31$ December $2023.(3)$

$($Hint: you do not need to reconstruct the entire Cash Flow Statement.$)$

Answer rating: 100% (QA)

Amswer 31 Calculation of Cash Generated from Operations for the year ended 31 December 2023 Profit a... View the full answer