QUESTION THREE

$[25]$

The annual financial statements of Bongo $($Pty$)$ Ltd are in the final stages of completion for the year ended $30$ June $2023.$ The following information was extracted to prepare the statement of cash flows for the current financial year.

Bongo $($Pty$)$ Ltd

Statement of financial position as at $30$ June $2023($with comparative values for $30$ June $2022)$:

$\backslash$table$[[$ASSETS$,\backslash$table$[[30$ June $2023],[$R$]],\backslash$table$[[30$ June $2022],[$R$]]],[$Equipment at carrying amount,$636000,324000],[$Inventory$,48000,45600],[$Trade receivables,$22800,27600],[$Bank$,202800,120000],[$Total Assets,$909600,517200],[\backslash$table$[[$EQUITY AND LIABILITIES$],[$Equity$]],636000,348000],[$Ordinary share capital,$396000,300000],[$Retained earnings,$240000,48000],[$Liabilities$,273600,169200],[$Long term borrowings,$186000,48000],[$Trade payables,$25200,76800],[$Income received in advance,$26400,19200],[$SARS: Tax payable,$36000,25200],[$Total Equity and Liabilities,$909600,517200]]$

Additional Information:

$1$ Authorised share capital: $1000000$ Ordinary shares

$2$ Issued share capital: $100000$ Ordinary shares were sold for cash during the current financial period.

$3$ Dividends of R$30000$ were declared and paid on $20$ June $2023.$

$4$ Equipment with a carrying amount of R$240000$ was sold and new equipment was purchased during the current financial year.

$5$

Bongo $($Pty$)$ Ltd raised a long term loan of R$168000$ in May $2023.$

$6$ The following information was extracted from the statement of comprehensive income for the year ended $30$ June $2023$:

Sales for the year was R$1464000$

Rental income was R$26400.$

Profit on disposal of equipment R$36000$

Depreciation R$48000$

Interest expense R$50400$

Income tax expense R$147600$

Profit after tax R$222000.$

Required:

Prepare the statement of cash flows for Bongo $($Pty$)$ Ltd for the financial year ended $30$ June $2023$ in compliance with the requirements of the International Financial Reporting Standards $($IFRS$)$ in as much as the given information allows. Use the indirect method.