Question 3 Ms Sade is a trader operating under the name of 'SA Traders'. She informs you that she consistently adds 33 1 % to the cost of all goods which she sells in order to arrive at selling prices. She presents you with the following financial statements for the years ended 31 March 2021 and 2022. INCOME STATEMENT 2022 2021 R R Sales net 471 100 380 000 Less cost of sales 360 900 285 000 Gross profit 110 200 95 000 Discount received 1 700 1 100 111 900 96 100 Operating expenses 93 420 66 900 Net profit transferred to capital account 18 480 29 200 BALANCE SHEET AT 31 MARCH 2022 2021 R R ASSETS NON-CURRENT ASSETS Furniture at cost 25 000 20 000 Less: depreciation 5 000 20 000 4 000 16 000 Motor vehicles at cost 35 000 Less: depreciation 1 750 33 250 16 000 53 250 CURRENT ASSETS 194 380 94 630 Stock 89 900 50 000 Debtors 87 730 43 130 Cash on hand and at bank 16 750 1 500 TOTAL ASSETS 247 630 110 630 73 520 84 500 OWNER'S EQUITY AND LIABILITIES Capital Account Balance 1 April 26 130 18 210 Capital introduced 55 000 Net profit for year 18 480 29 200 99 610 47 410 Less: drawings 25 500 21 280 NON-CURRENT LIABILITIES 74 110 26 130 Long-term loan 100 000 CURRENT LIABILITIES Creditors 10 970 35 000 Bills payable 62 550 37 500 Bank overdraft 12 000 TOTAL EQUITY AND LIABILITIES 247 630 110 630 ) FEBRUARY 2023 2022 2021 R R Expenses paid in cash are as follows: Advertising 7 750 500 Bank charges 490 450 Bad debts 15 570 8 160 Manager's commission on sales 23 820 19 000 Delivery charges 5 020 5 440 Depreciation: furniture 1 000 1 000 Depreciation: motor vehicles 1 750 General expenses 220 100 Interest on overdraft 250 Motor vehicle running costs 2 300 Rent 11 000 12 000 Salaries and wages 24 500 20 000 93 420 66 900 R R Cost of sales Opening stock 1 April 50 000 30 000 Local purchases 88 800 105 000 Overseas purchases 250 000 150 000 Carriage inwards paid in cash 62 000 50 000 450 800 335 000 Less closing stock 31 March 89 900 50 000 360 900 285 000 No fixed assets were sold during this year. Additional furniture costing R5 000 was purchased 1 April 2021. The motor vehicles were purchased on 1 April 2021. The loan of R100 000 which bears interest at the rate of 5% p.a. payable in arrear was obtained on 1 April 2021. Required A cash flow statement for the year ended 31 March 2022.