The following represents the financial statements (and notes to the financial statement of CashSense (Pty) Ltd....

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The following represents the financial statements (and notes to the financial statement of CashSense (Pty) Ltd. Use the information contained therein and other information provided to answer the questions that follow: STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF CASHSENSE (PTY) LTD FOR THE YEAR ENDED 31 DECEMBER 2022 Sales revenue Cost of sales Gross profit Operating expenses Operating profit Financing costs Profit before taxation Taxation for the year Profit after taxation R'000 20 556 (5 280) 15 276 (8 536) 6 740 (1 240) 5.500 1540 3960 A Provision for credit losses (at 01 January 2022) Cash and cash equivalents Share capital Retained profit Trade payables Long-term loan Additional Information: 572 29 124 220 2 000 152 3 952 5500 29 124 At year end, 31 December 2022, the following transactions were noted: Inventory count at year end showed that the actual amount of inventory was R2.05 million. • The company's rental contract was in place at 01 January 2022. The contract provides for a 10% increase at 01 July 2022. At year-end, 31 December 2022, the company had paid the full rent for January 2023 as well as the entire year. ADDITIONAL INFORMATION: On 30 April 2022, equipment was sold at a loss of R2 000, and replacement equipment was bought on the same date. There were no further disposal or acquisition of assets for the year. . The company declared and paid a dividend of 10 cents per ordinary share at year end 2022. The company had no outstanding payment of dividends. • Operating expenses include depreciation and loss on sale of asset. REQUIRED . 3.1 3.2 Using the direct method of presentation, prepare and present the cash flows from operating activities section of the statement of cash flows of CashSense (Pty) Ltd for the year ended 31 December 2022. (13) Prepare the following T-accounts: 3.2.1 Trade receivables 3.2.2 Inventory 3.2.3 Trade payables 3.2.4 Tax payable 3.3 Calculate the cash and cash equivalents generated during the year (Hint: You do not need to redraft the entire cash flow statement) (10) (2) The following represents the financial statements (and notes to the financial statement of CashSense (Pty) Ltd. Use the information contained therein and other information provided to answer the questions that follow: STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF CASHSENSE (PTY) LTD FOR THE YEAR ENDED 31 DECEMBER 2022 Sales revenue Cost of sales Gross profit Operating expenses Operating profit Financing costs Profit before taxation Taxation for the year Profit after taxation R'000 20 556 (5 280) 15 276 (8 536) 6 740 (1 240) 5.500 1540 3960 A Provision for credit losses (at 01 January 2022) Cash and cash equivalents Share capital Retained profit Trade payables Long-term loan Additional Information: 572 29 124 220 2 000 152 3 952 5500 29 124 At year end, 31 December 2022, the following transactions were noted: Inventory count at year end showed that the actual amount of inventory was R2.05 million. • The company's rental contract was in place at 01 January 2022. The contract provides for a 10% increase at 01 July 2022. At year-end, 31 December 2022, the company had paid the full rent for January 2023 as well as the entire year. ADDITIONAL INFORMATION: On 30 April 2022, equipment was sold at a loss of R2 000, and replacement equipment was bought on the same date. There were no further disposal or acquisition of assets for the year. . The company declared and paid a dividend of 10 cents per ordinary share at year end 2022. The company had no outstanding payment of dividends. • Operating expenses include depreciation and loss on sale of asset. REQUIRED . 3.1 3.2 Using the direct method of presentation, prepare and present the cash flows from operating activities section of the statement of cash flows of CashSense (Pty) Ltd for the year ended 31 December 2022. (13) Prepare the following T-accounts: 3.2.1 Trade receivables 3.2.2 Inventory 3.2.3 Trade payables 3.2.4 Tax payable 3.3 Calculate the cash and cash equivalents generated during the year (Hint: You do not need to redraft the entire cash flow statement) (10) (2)

Answer rating: 100% (QA)

31 Cash Flows from Operating Activities Cash received from customers Sales revenue 20556 Less Decrea... View the full answer