QUESTION 1 [30 MARKS]
The following information was obtained from the accounting records of DBE Ltd on 31 December
2018, which is its financial year-end. The company has an authorised share capital of 750 000
ordinary shares.
REQUIRED:
Complete the Cash Flow Statement for the year ended 31 December 2018. Show all
workings to obtain part-marks.
Extract from the Income Statement for the year ended 31 December 2018:
interest on loan 27000
interest on overdraft 380
depreciation 58000
income tax 23000
net profit before income tax 100000
Information from the Statement of Financial Position:
2018 2017
2018 2017
Ordinary Share Capital 678 000.00 440 000.00
Retained Income 73 000.00 56 000.00
Loan: TK Bank 130 000.00 170 000.00
Fixed Assets (Carrying Value) 549 000.00 420 000.00
Inventory 61 000.00 73 000.00
Trade and other receivables 214 320.00 150 600.00
Bank Favourable 30 130.00 -
Bank (Overdraft) - 10 000.00
Cash Float 1 000.00 1 000.00
Trade and other payables 158 400.00 152 550.00
SARS Income tax* (2018: Debit) (2017: Credit 4 000.00 10 000.00
Shareholders for dividends 28 000.00 22 000.00
* Included above in Trade and other receivables and Trade and other payables.
· Total dividends for the year amounted to R60 000.
· New equipment was purchased, and a vehicle was sold during the year, at its carrying value of R17 000.
· Shares to the value of R400 000 were repurchased during the year. This transaction was recorded
