Work out question 3 from page 4 to page 6 (cash flow statement)

Required: 2.1 Calculate the following ratios for the year ending 31 December 2019 2.1.1. Current ratio 2.12 Acid Test Ratio 2.1.3. Debtors' collection period 2.1.4 Creditors payment period 2.1.5 Stock turnover rate 2.2 Using the ratio's calculated in 2.1, comment on the liquidity of the company (3) (3) (3) (3) (10) QUESTION THREE [25] The following are extracts from the financial statements of Hooves & Boots Ltd for the year ended 31 December 2019 Hooves & Boots Ltd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 Revenue R280 842 Cost of Sales (100 000) Gross Profit 180 842 Interest received 4528 Dividends received on listed investments 6 680 Profit on disposal of property, plant & equipment 560 Administration expenses (64 730) Depreciation of property, plant & equipment (37 280) Interest paid (19 840) Profit before tax 70 760 Taxation (27232) Profit for the year 43 528 4 Hooves & Boots Ltd Statement of Changes in Equity for the year ended 31 December 2019 Retained Earnings Opening balance 153 416 Profit for the year 43 528 Dividends to shareholders (23366) Closing balance 173 578 Hooves & Boots Ltd Statement of Financial Position as at 31 December 2019 2018 536 706 442 216 Assets Non-current assets Property. Plant and Equipment Investment in listed shares 501 648 35 058 417 848 24 368 Current assets 191 962 Inventory Trade Receivables 235 750 93 310 136 774 5 666 65 250 120 690 6022 634 178 Bank Total Assets 772 456 Equity and Liabilities 342 236 403 176 31 300 Equity Share Capital Revaluation Surplus Retained Earnings 198 298 313 157 520 153 416 173 578 195 334 152 288 152 2BB 195 334 173 946 Non-current Liabilities Long term loan Current Liabilities Trade Payables Tax Payable Dividends Payable Short Term Loans Total Equity and Liabilities 90 540 4 776 139 654 72 066 5 424 12 582 66 048 12 582 49 582 772 456 634 178 5 Additional information: 1) The short-term portion of the long-term loan included in the short-term loans was R 15 408 (2018: R 29 402 - this was paid as planned in 2019). 2) The proceeds from the sale of property, plant & equipment amounted to R 1 978 during the current year. R 24 000 of the purchases of property, plant & equipment during the current year was for the expansion of operations Land (included in property, plant & equipment) was revalued during 2019 Required: Prepare the Statement of Cash Flows for Hooves & Boots Ltd for the year ended 31 December 2019 Show workings clearly The Reconciliation of Profit before tax and Cash generated from operations is not required [25] QUESTION FOUR The following information was provided by Zepi Traders: 1. The bank balance on 31 July 2021 is expected to be R100 000 (unfavourable) 2. The expected total sales are as follows: July 2021 R200 000 August 2021 R160 000 September 2021 R150 000 October 2021 R140 000 3. Cash sales are estimated at 50% of total sales, they are entitled to a discount of 3% and the balance is on credit. 4. Collection of credit sales are as follows: 40% in the month of sale 55%one month after the sale and the balance written off as irrecoverable. 5. Budgeted credit purchases of inventory are as follows: July 2021 R80 000 August 2021 R60 000 September 2021 R50 000 October 2021 R90 000 6. Credit purchases are paid in the month following the credit purchases, less 4% discount 6