question 4.1

eson or 02-6 Assignment Ser Question 4 (30 marks) The following represents the financial statements of Cash Smart (Pty) Ltd. Use the information contained therein and other information provided to answer the questions that follow: Statement of Comprehensive Income for Cash Smart (Pty) Ltd for the year ended 30 June 2020 R'000 95 576 62 000 33 576 6 000 Sales revenue Cost of sales Gross profit Other operating income Gross operating profit Operating expenses Operating profit Financing costs Profit before taxation Taxation for the year Profit after taxation 39 576 35 250 4 326 2 400 1 926 578 1 348 Statement of Financial Position for Cash Smart (Pty) Ltd as at 30 June 2020 2020 2019 R'000 R'000 Assets Non-current assets Property, Plant and Equipment (@carrying value) 21350 19 850 Current assets Inventories 7 142 7 380 Trade receivables 15 952 12 988 Cash and cash equivalents 13 092 9 876 Total assets 57 536 50 094 Equity and liabilities Ordinary share capital (par value of R0.50) Share premium Retained earnings Non-current liabilities 12 000 6 000 5 235 10 000 5 000 4 607 -76 0 ember 2020 Page 3 of 6 vve. (10) rand, 24 000 20 000 Long-term loan Current liabilities Trade payables Tax payable Total equity and liabilities 9 104 1 197 57 536 9 322 1 165 50 094 Additional information: i. The company declared and paid a dividend of 3 cents per ordinary share at year-end 2020. The company had no outstanding payment of dividends. ii. A depreciation amount of R1 million was included in the operating expenses for the year ended 2020. There was no disposal of non-current assets but replacement equipment was purchased during the year ended 30 June 2020. iii. Required: Prepare the Statement of Cash Flows for the year ended 30 June 2020 4.1 using the direct method. (20)