QUESTION ONE [25] Prepare the indirect cashflow statement for the financial year ended 30 June 2023 for Bibby Limited based on the following financial information provided: Statement of Financial Position as at 30 June 2023 Assets 2023 2022 Non-current assets Property, Plant and Equipment 2 485 000 2 358 000 Current assets Inventory 1279 000 985 300 Accounts receivable 412 000 535 000 Cash and Cash equivalents 531 300 367 700 2222 300 1 888 000 Total assets 4 707 300 4 286 000 Equity and liabilities Equity Share capital 2 650 000 2 150 000 Retained income 1248 000 745 000 3 898 000 2 895 000 Non-current liabilities Loan 9% 456 000 980 000 Current liabilities Accounts payable 97 800 51 000 Taxes SARS 154 000 162 000 Shareholders for dividends 101 500 198 000 353 300 411 000 Total equity and liabilities 4 707 300 4 286 000 Statement of Comprehensive Income for the year ended 30 June 2023 2023 2022 Sales 5240 000 4 985 000 Cost of sales (2 354 000) (1358 000) Gross profit 2 886 000 3627 000 Distribution, Administration and other expenses (2 114 439) (1 767 000) Operating expenses 1943 439 1 598 500 Depreciation 171 000 168 500 Operating profit 771 561 1 860 000 Interest on loan (72 950) (158 000) Profit before tax 698 611 1702 000 Tax (195 611) (476 560) Profit after tax 503 000 1225 440 QUESTION TWO [35] The trial balance of Nixit Ltd was prepared by the junior bookkeeper for the financial year ended 31 August 2023. Account Debit Credit Municipal charges 26 800 Telephone and communication 23400 Rental expenses 39 000 Credit losses 1 500 Interest received 14 400 Consulting charges 495 000 Sale of goods 1 548 000 Cost of sales 630 000 Printing and stationery 22 800 Director fees 28 000 Salaries and wages 215 000 Interest on loan 12 000 Penalties and fines 1500 Cleaning fees 6 400 Computer expenses 4 800 Capital 110 000 Retained income 25 800 Creditors control 52 000 Computer equipment 198 000 Accumulated depreciation on computer equipment 59 800 Investment propert 376 100 Debtors control 148 000 Allowance for credit losses 23 000 Inventory: Raw material 54 800 Inventory: Stationery 14 000 Motor vehicles 250 000 Accumulated depreciation on motor vehicles 34 000 Office equipment 159 000 Accumulated depreciation on office equipment 41 500 10% Loan 160 000 Investment 185 000 Cheque account: FNB 167 400 2 563 500 2 563 500 Additional information: (a) Depreciation has not been recorded on property, plant and equipment. Motor vehicles are depreciated on the reducing balance method at 20%. Computer equipment of R85 000 was purchased on 1 February 2023, replacing older items initially purchased for R48 000 on 1 November 2019. Office equipment of R27 000 was purchased on 31 December 2022. Computer equipment and office equipment depreciates on the straight-line basis at 25% and 10% respectively. (b) Mr. Roy returned faulty goods of R8 100. Nixit Traders applies a 50% markup on finished products. (c) The company allows a 2,5% discount for accounts settled within 30 days. Mrs. Redkin purchased goods of R58 000 on a 30-day account on 1 August 2023. The account was paid on 27 August 2023, but the bookkeeper neglected to record the discount in all affected accounts. (d) The water and electricity account of R1 500 was received on 21 September 2023. (e) Artwork of R2 500 was donated to Nixit Limited but not recorded. (f) Professional work completed but not yet invoiced at year-end amounts to R5 000. (g) A delivery truck was purchased on 1 December 2022 for R120 000 with an estimated residual value of R35 000. No vehicles were sold during the year. (h) Rental for September 2023 was paid on 12 August 2023. (i) The company is taxed at 28%. Required: Prepare the Statement of Comprehensive Income of Nixit Limited for the year ended 31 August 2023. Detail all calculations. QUESTION THREE [10] Using a flow chart illustrate the accounting process. END OF QUESTION PAPER