FAC1601 Assignment 4 (COMPLETE ANSWERS) Semester 2 2023 - DUE 16 October 2023 written by iStudy www.stuvia.com

FAC1601 Assignment 4 (COMPLETE ANSWERS) Semester 2 2023 - DUE 16 October 2023 written by iStudy Downloaded by: priscillarnqobileduma | Distribution of this document is illegal Want to earn R13,625 per year? Terms of use By making use of this document you agree to:  Use this document as a guide for learning, comparison and reference purpose,  Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,  Fully accept the consequences should you plagiarise or misuse this document. Disclaimer Extreme care has been used to create this document, however the contents are provided “as is” without any representations or warranties, express or implied. The author assumes no liability as a result of reliance and use of the contents of this document. This document is to be used for comparison, research and reference purposes ONLY. No part of this document may be reproduced, resold or transmitted in any form or by any means. FAC1601 Assignment 4 Semester 2 2023 Unique Number: Due Date: 16 October 2023 S - The study-notes marketplace Downloaded by: priscillarnqobileduma | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace Question 1 Answer saved Marked out of 7.00 The information below relates to questions below: You have been presented with the following information to assist in the preparation of the statement of cash flows for Mhlabavuleka Limited: Extract of items from the statement of financial position information as at 28 February 2023: R R Dividends receivable 20,500 12,500 Listed investment at fair value 274,200 220,000 Current tax receivable 23,800 8,500 Inventory 67,500 51,900 Interest receivable - 7,100 Trade debtors control 52,700 49,300 Bank (Dr) 43,800 30,000 Loans to director 252,500 236,300 Machinery at cost 191,700 240,600 Accumulated depreciation: Machinery 41,100 14,600 Land and buildings 808,800 481,100 Share capital 711,300 628,000 Retained earnings 968,400 567,900 Revaluation reserve 168,700 118,500 Mortgage 78,300 209,600 Dividends payable 10,900 17,400 Trade creditors control 33,800 20,700 Interest payable 13,400 9,700 Extract of items disclosed in the statement of profit or loss and other comprehensive income information for the year ended 28 February 2023: R Profit on sale of machinery 12,300 Interest income: loans to directors 10,100 Investment income: Dividend received 11,300 Rental income 21,800 Gain on financial assets at fair value through profit or loss 23,500 Interest expense 11,100 Depreciation (machinery) 45,400 Income tax expense 197,000 Additional information 1. The company presents the statement of cash flows using the indirect method. 2. Mhlabavuleka Limited's net cash flow position deteriorated significantly towards the end of the financial year and as a result, only R88 000 was paid as dividends to shareholders (in cash). 3. To aid the cash flow position, the company sold property, plant and equipment in cash. 4. The purchases of property, plant and equipment were made from second-hand dealers in cash. 5. According to the policy of the company, all the loans advanced to the directors are immediately callable and interest charged on these loans is capitalised. Which of the following alternatives represents the correct amount that must be disclosed as profit before tax in the