Sun Ltd is a retailer specialising in swimwear and summer clothing. The following information was taken...
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Sun Ltd is a retailer specialising in swimwear and summer clothing. The following information was taken from the accounting records for the year ended 30 September 2019. Sun Ltd Statement of comprehensive income for the year ended 30 September 2019 Sales Cost of sales Gross profit Other income Rental income Commission income Profit on disposal of equipment Distribution, administration and other expenses Depreciation Electricity and water Rent expense Salaries and wages Sundry expenses Finance cost Interest expense Profit before tax Income tax expense Profit for the year R 976 000 (344 000) 632 000 79 100 17 600 37 500 24 000 (431 100) 32 000 47 900 88 300 192 000 17 900 (33 600) 33 600 246 400 (98 400) 148 000 Sun Ltd Statement of financial position as at 30 September 2019 (including comparative figures): Sept 2018 Sept 2019 R 424 000 32 000 ASSETS Equipment at carrying amount Inventory Trade debtors Bank Total assets EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings Liabilities Long term borrowings Trade payables Income received in advance SARS: Tax payable Total equity and liabilities 15 200 135 200 606 400 424 000 264 000 160 000 182 400 124 000 16 800 17 600 24 000 606 400 Additional information: 1. Sun Ltd issued 100 000 ordinary shares on 30 June 2019. R 216 000 30 400 18 400 80 000 344 800 232 000 200 000 32 000 112 800 32 000 51 200 12 800 16 800 344 800 2. Dividends of R20 000 were declared and paid in full on 15 August 2019. 3. During the year equipment with a carrying amount of R160 000 was sold and new equipment was purchased. 4. The company raised a long term loan of R112 000 during the year. Required: Prepare the statement of cash flows of Sun Ltd for the year ended 30 September 2019 in compliance with the requirements of the international financial reporting standards in as much as the given information allows. Use the indirect method. Sun Ltd is a retailer specialising in swimwear and summer clothing. The following information was taken from the accounting records for the year ended 30 September 2019. Sun Ltd Statement of comprehensive income for the year ended 30 September 2019 Sales Cost of sales Gross profit Other income Rental income Commission income Profit on disposal of equipment Distribution, administration and other expenses Depreciation Electricity and water Rent expense Salaries and wages Sundry expenses Finance cost Interest expense Profit before tax Income tax expense Profit for the year R 976 000 (344 000) 632 000 79 100 17 600 37 500 24 000 (431 100) 32 000 47 900 88 300 192 000 17 900 (33 600) 33 600 246 400 (98 400) 148 000 Sun Ltd Statement of financial position as at 30 September 2019 (including comparative figures): Sept 2018 Sept 2019 R 424 000 32 000 ASSETS Equipment at carrying amount Inventory Trade debtors Bank Total assets EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings Liabilities Long term borrowings Trade payables Income received in advance SARS: Tax payable Total equity and liabilities 15 200 135 200 606 400 424 000 264 000 160 000 182 400 124 000 16 800 17 600 24 000 606 400 Additional information: 1. Sun Ltd issued 100 000 ordinary shares on 30 June 2019. R 216 000 30 400 18 400 80 000 344 800 232 000 200 000 32 000 112 800 32 000 51 200 12 800 16 800 344 800 2. Dividends of R20 000 were declared and paid in full on 15 August 2019. 3. During the year equipment with a carrying amount of R160 000 was sold and new equipment was purchased. 4. The company raised a long term loan of R112 000 during the year. Required: Prepare the statement of cash flows of Sun Ltd for the year ended 30 September 2019 in compliance with the requirements of the international financial reporting standards in as much as the given information allows. Use the indirect method.
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Cash flows from Operating Activities Net Income NonCash adjustments Depreciation Pro... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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