The following information was extracted from the accounting records of Autima Projects Limited on 30 April...

 

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The following information was extracted from the accounting records of Autima Projects Limited on 30 April 2020, the last day of their financial year. Information 1. Extract from the Statement of Comprehensive Income Depreciation 16 000 Interest expense 18 000 Income tax for the year Net profit after tax Tangible assets at carrying value Inventories 2. Extract from Statement of Financial Position Trade debtors Cash on hand Bank overdraft Prepaid expense (Interest on loan) Ordinary share capital Share premium Retained Income Loan from Pinetown Bank Trade creditors Shareholders for dividends SARS-income tax Required: 3.1 15 000 2 000 160 000 45 000 26 100 30 April 2020 310 000 50 000 60 000 3 000 32 000 81.000 58 000 2 45 000 12 000 (Receivable) 8 000 30 April 2019 220 000 35 000 65 000 15 000 0 1 000 100 000 30 000 75 000 3. Additional Information A. Some fixed assets were sold for R37 000 cash at carrying value and additional fixed assets were purchased during the year. B. Interim dividends at R8100 was declared and paid on 31 October 2019. C. Final dividends were declared on 30 Aprill 2020 and will be paid on 19 May 2020. QUESTION FOUR 4.1 Elaborate on the various users of financial statements. 4.2 49 000 59 000 9 000 (Payable) 14 000 Prepare the following: 3.1.1 Compile the note for reconciliation between profit before taxation and cash generated from operations. (12) 3.1.2 Prepare the cash flow statement for the year ended 30 April 2020. All workings must be shown in brackets to earn part-marks. (9) 3.2 Explain the purpose of a cash flow statement? (4) Examine Debt Management as a financial management tool. [25] (15) (10) The following information was extracted from the accounting records of Autima Projects Limited on 30 April 2020, the last day of their financial year. Information 1. Extract from the Statement of Comprehensive Income Depreciation 16 000 Interest expense 18 000 Income tax for the year Net profit after tax Tangible assets at carrying value Inventories 2. Extract from Statement of Financial Position Trade debtors Cash on hand Bank overdraft Prepaid expense (Interest on loan) Ordinary share capital Share premium Retained Income Loan from Pinetown Bank Trade creditors Shareholders for dividends SARS-income tax Required: 3.1 15 000 2 000 160 000 45 000 26 100 30 April 2020 310 000 50 000 60 000 3 000 32 000 81.000 58 000 2 45 000 12 000 (Receivable) 8 000 30 April 2019 220 000 35 000 65 000 15 000 0 1 000 100 000 30 000 75 000 3. Additional Information A. Some fixed assets were sold for R37 000 cash at carrying value and additional fixed assets were purchased during the year. B. Interim dividends at R8100 was declared and paid on 31 October 2019. C. Final dividends were declared on 30 Aprill 2020 and will be paid on 19 May 2020. QUESTION FOUR 4.1 Elaborate on the various users of financial statements. 4.2 49 000 59 000 9 000 (Payable) 14 000 Prepare the following: 3.1.1 Compile the note for reconciliation between profit before taxation and cash generated from operations. (12) 3.1.2 Prepare the cash flow statement for the year ended 30 April 2020. All workings must be shown in brackets to earn part-marks. (9) 3.2 Explain the purpose of a cash flow statement? (4) Examine Debt Management as a financial management tool. [25] (15) (10)

Answer rating: 100% (QA)

311 Reconciliation between profit before taxation and cash generated from operations Net profit after tax 26100 Add Depreciation 16000 Add Interest expense 18000 Less Increase in trade debtors 5000 60... View the full answer