QUESTION FIVE [10]

The following information was extracted from the accounting records of Humid Limited for the year ended 31 May 2020:

Humid Ltd

Summary of the statement of profit and loss and other comprehensive income

for the year ended 31 May 2020 .

		31 May 2020 R
Sales Cost of sales		1 840 000 (980 000)
Gross profit Other income		860 000 185 000
Commission income Profit on sale of non-current asset		123 000 62 000
Distribution administration and other expenses		(625 000)
Audit fees Depreciation Salaries and wages Other expenses		58 000 80 000 402 000 85 000
Finance cost		(40 000)
Interest on borrowings		40 000
Profit before taxation		380 000
Income tax expense		(80 000)
Profit / total comprehensive income for the year		300 000

Humid Ltd

Extract from the statement of financial position as at 31 May 2020.

	31 May 2020 R	31 May 2019 R
Inventories merchandise Stationery Trade debtors Bank Trade creditors Prepaid expenses Accrued expenses	90 000 5 000 330 000 147 000 170 000 4 200 16 800	122 000 5 800 298 000 53 000 178 000 1 800 17 600

Required:

Prepare the following section of the statement of cash flows of Humid Limited for the year ended 31 May 2020:

• Cash generated by operations section only.

Note that the entire cash flows from operating activities section is not required.

Humid Limited uses the indirect method to prepare its statement of cash flows.