The following information has been extracted from the records of Agri Vest Ltd that sells a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information has been extracted from the records of Agri Vest Ltd that sells a range of agricultural equipment across the country. The following information has been extracted for the year ended 30 September 2018. Agri Vest Ltd Extract from the statement of profit or loss and other comprehensive income for the year ended 30 September 2018 Gross profit Other operating expenses Operating profit Other operating income Profit on sale of equipment Profit from operations Financing activities Investment income - dividends Interest on mortgage bond Profit before tax Income tax Profit for the year R 2 400 000 (1 580 000) 820 000 12 000 832 000 68 000 (164 000) 736 000 (187 040) 548 960 Agri Vest Ltd Cash flow statement for the year ended 30 September 2018 Cash flow from operating activities Cash received from customers Cash paid to suppliers and employees Net cash generated by operations Dividends received Interest received Dividends paid Interest paid Tax paid Cash flow from investment activities Increase in investments Purchase of land for expansion Proceeds from sale of machinery New equipment for expansion Cash flow from financing activities Increase in mortgage bond R 115 960 5 850 000 (5 010 000) 840 000 68 000 3.1 (410 000) (164 000) (218 040) (1 644 400) (314 400) (1 200 000) 30 000 (160 000) 1 000 000 550 000 450 000 Issue of ordinary shares Net increase(decrease) in cash and cash equivalents Cash & cash equivalents at beg of period Cash & cash equivalents at end of period REQUIRED: Use the financial information provided to answer the multiple choice questions on eFundi which your group has worked out together (only the selected group member submits the work). (528 440) 29 000 (499 440) Which one of the following statements is correct? a) Agri Vest Ltd had a positive cash flow for the year ended 30 September 2018. b) Agri Vest Ltd has a debit balance in the bank account on 30 September 2018 of R499 440. c) Agri Vest Ltd had a negative cash flow for the year ended 30 September 2018. d) Agri Vest Ltd had a credit balance in the bank account on 1 October 2017 of R29 000. 3.2 3.3 3.4 3.5 When analysing the cash flow statement of Agri Vest Ltd for the year ended 30 September 2018, it is evident that the largest portion of the negative cash flow can be attributed to: a) Operating activities b) Investment activities c) Financing activities d) The net loss Which one of the following statements is correct when analysing the cash flow statement of Agri Vest Ltd for the year ended 30 September 2018, especially when considering cash flow from financing activities? a) Agri Vest Ltd had a positive cash flow from financing activities for the year ended 30 September 2018 of R1 000 000. b) Agri Vest Ltd had a negative cash flow from financing activities for the year ended 30 September 2018 of R1 000 000. c) The increase in the mortgage bond of R550 000 decreases the liability (loan). d) The issue of ordinary shares of R450 000 would result in a debit to equity. When analysing the cash flow statement of Agri Vest Ltd for the year ended 30 September 2018, it is evident that a large portion of positive cash flow can be attributed to: a) Expanding the business. b) Profit earned for the year. c) The interest received. d) The increase in the liability (mortgage bond). Which decision by the board through the financial year could have placed Agri Vest Ltd in a better cash position on 30 September 2018? a) Pay the creditors and suppliers earlier. b) Do not issue any shares. c) Increase the investment in land and new equipment. d) Do not declare or issue dividends. The following information has been extracted from the records of Agri Vest Ltd that sells a range of agricultural equipment across the country. The following information has been extracted for the year ended 30 September 2018. Agri Vest Ltd Extract from the statement of profit or loss and other comprehensive income for the year ended 30 September 2018 Gross profit Other operating expenses Operating profit Other operating income Profit on sale of equipment Profit from operations Financing activities Investment income - dividends Interest on mortgage bond Profit before tax Income tax Profit for the year R 2 400 000 (1 580 000) 820 000 12 000 832 000 68 000 (164 000) 736 000 (187 040) 548 960 Agri Vest Ltd Cash flow statement for the year ended 30 September 2018 Cash flow from operating activities Cash received from customers Cash paid to suppliers and employees Net cash generated by operations Dividends received Interest received Dividends paid Interest paid Tax paid Cash flow from investment activities Increase in investments Purchase of land for expansion Proceeds from sale of machinery New equipment for expansion Cash flow from financing activities Increase in mortgage bond R 115 960 5 850 000 (5 010 000) 840 000 68 000 3.1 (410 000) (164 000) (218 040) (1 644 400) (314 400) (1 200 000) 30 000 (160 000) 1 000 000 550 000 450 000 Issue of ordinary shares Net increase(decrease) in cash and cash equivalents Cash & cash equivalents at beg of period Cash & cash equivalents at end of period REQUIRED: Use the financial information provided to answer the multiple choice questions on eFundi which your group has worked out together (only the selected group member submits the work). (528 440) 29 000 (499 440) Which one of the following statements is correct? a) Agri Vest Ltd had a positive cash flow for the year ended 30 September 2018. b) Agri Vest Ltd has a debit balance in the bank account on 30 September 2018 of R499 440. c) Agri Vest Ltd had a negative cash flow for the year ended 30 September 2018. d) Agri Vest Ltd had a credit balance in the bank account on 1 October 2017 of R29 000. 3.2 3.3 3.4 3.5 When analysing the cash flow statement of Agri Vest Ltd for the year ended 30 September 2018, it is evident that the largest portion of the negative cash flow can be attributed to: a) Operating activities b) Investment activities c) Financing activities d) The net loss Which one of the following statements is correct when analysing the cash flow statement of Agri Vest Ltd for the year ended 30 September 2018, especially when considering cash flow from financing activities? a) Agri Vest Ltd had a positive cash flow from financing activities for the year ended 30 September 2018 of R1 000 000. b) Agri Vest Ltd had a negative cash flow from financing activities for the year ended 30 September 2018 of R1 000 000. c) The increase in the mortgage bond of R550 000 decreases the liability (loan). d) The issue of ordinary shares of R450 000 would result in a debit to equity. When analysing the cash flow statement of Agri Vest Ltd for the year ended 30 September 2018, it is evident that a large portion of positive cash flow can be attributed to: a) Expanding the business. b) Profit earned for the year. c) The interest received. d) The increase in the liability (mortgage bond). Which decision by the board through the financial year could have placed Agri Vest Ltd in a better cash position on 30 September 2018? a) Pay the creditors and suppliers earlier. b) Do not issue any shares. c) Increase the investment in land and new equipment. d) Do not declare or issue dividends.
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
The following information has been extracted from the records of Target Company: Sales ....................................................................................$400,000 Purchases of direct...
-
The following information has been extracted from the records of Stevens Stationery about one of its popular products. Stevens Stationery uses the perpetual inventory system. Its annual reporting...
-
The following information has been extracted from the records of Due North Sales (DNS) Co.: January 1 January 9 January 15 January 25 Beginning Inventory Bought Sold 550 units @ $26 each 1,000 units...
-
The B.B. Lean Co. has 1.4 million shares of stock outstanding. The stock currently sells for $20 per share. The firm's debt is publicly traded and was recently quoted at 93 percent of face value. It...
-
In 2009, Capitol Records sued Jammie Thomas Rasset for damages after she was found liable for copyright violations when she illegally downloaded 24 songs off the Internet. Apparently, in addition to...
-
Identify the difference between a private limited company and a public limited company.
-
Prepare a statement of cash flows for Tsingtao Breweries, China, from the following scrambled list of items. Increase in inventories 8,000 Operating income Dividends 220,000 30,000 Increase in...
-
Orinoco Citys General Fund had the following transactions regarding property taxes during calendar year 2012. Prepare journal entries to record the transactions. 1. Orinoco levies property taxes in...
-
(a) NP and Co. has imported goods for US $ 7,00,000. The amount is payable after three months. The company has also exported goods for US $ 4,50,000 and this amount is receivable in two months. For...
-
Aduke Zhawaki is a talented musician who runs a business teaching music and playing in gigs with a variety of other musicians. Her business is operated as a proprietorship, under the name A to Z...
-
Define brand positioning in your words and give an example of Brand positioning (from APPLE).
-
Which is considered an indirect gift by an employee to a trust? A. Contributions to an adoption assistance program. B. Irrevocable assignment of group term life insurance. C. The revocation of a...
-
Dr. Dante DeMarco, dermatologist, wants to provide fringe benefits to his staff. Which fringe benefits can be provided income-tax free to his employees? I. 50 percent off on microdermabrasion. II....
-
Based on the history review of the mortgage market presented at the beginning of the chapter, can we say that the originate-to-distribute model is a recent business model?
-
A self-assessed risk-averse client wants to accumulate wealth. Of the following, which is the most critical action the personal financial planner should accomplish to assist the client in the...
-
Who qualifies for a dependent care assistance plan? I. A dependent child who was under the age of 18 when the care was provided. II. A dependent who is mentally or physically challenged. III. A...
-
Payday lenders are firms that make short-term (often one- to two-week) loans to consumers. The intent is to provide households with some extra cash in advance of the next paycheck. According to the...
-
Shreemaya Hotel in !adore was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing...
-
The Stone Shoe Company adopted dollar-value LIFO on January 1, 2007. The company produces four products and uses a single inventory pool. The company's beginning inventory consists of the following:...
-
The following are several transactions of the Pruitt Company that occurred during the current year and were recorded in real (that is, balance sheet) accounts unless indicated otherwise: Date...
-
A friend of yours says, I understand there are rules for financial reporting. But what are these rules, where can a person find them, and which ones are more important? Required Prepare an answer for...
-
Depository institutions have been losing their advantage over other financial intermediaries in attracting customers funds. Why?
-
In the aftermath of the financial crisis of 20072009, there were calls to reinstate the separation of commercial and investment banking activities that was removed with the repeal of the...
-
The globalization of banking has led to the need for global benchmarks for interest rates. In light of the LIBOR scandal, what characteristic do you think is most central to any new interest rate...
Study smarter with the SolutionInn App