FAC1601 EXAM 2025 SENESTER 2 20 OCT

Question 1




Qina Cement CC Statement of Cash Flows for the year ended 28 February 2025

Cash flows from investing activities R
Purchase of land and buildings (Calculation 1) (173 000)
Purchase of machinery and equipment (Calculation 2) (511 500)
Purchase of vehicles (Calculation 4) (184 800)
Proceeds from sale of machinery (Calculation 3) 86 920
Proceeds from sale of vehicles (Calculation 5) 27 000
Net cash used in investing activities (755 380)




Calculations for Question 1

1.

Cash purchase = Closing Balance - Opening Balance - Revaluation

Cash purchase = R823 400 - R556 800 - R93 600 = R173 000

2. Purchase of machinery and equipment (M&E)

Cash purchase = Closing Cost - Opening Cost + Disposals (Cost) - Non-cash
acquisitions

Cash purchase = R1 963 700 - R1 568 000 + R151 800 - R36 000 = R511 500

3. Proceeds from sale of machinery

Depreciation for 2025 (1 Mar 24 - 31 Oct 24 = 8 months):

, R151 800 x 15% x 8/12 = R15 180

Total accum. dep. at disposal: R36 900 + R15 180 = R52 080

Carrying amount at disposal: R151 800 (Cost) - R52 080 (Accum. Dep.) = R99 720

Loss on sale: R12 800

Proceeds = Carrying Amount - Loss

Proceeds = R99 720 - R12 800 = R86 920

4. Purchase of vehicles

Cash purchase = Closing Cost - Opening Cost + Disposals (Cost)

Cash purchase = R516 000 - R459 800 + R128 600 = R184 800

5. Proceeds from sale of vehicles

Carrying amount at disposal: R128 600 - R101 600 = R27 000

The vehicle was sold at its carrying amount.

Proceeds = R27 000