Description
OnyOnyx (Pty) Ltd is a manufacturer and retailer of fashion apparel based in the south of
Johannesburg. You have been requested to assist in the preparation of the statement of cash
flows for the reporting period ended 31 March 2023. You’ve been provided with the following
extracted balances from the statement of financial position as at 31 March 2023:
Additional
information R R
2023 2022
Property, plant and equipment 1 9 980 000 8 800 000
Inventories 1 850 000 1 400 000
Trade receivables 5 550 000 4 250 000
Cash and cash equivalents 20 799 000 23 189 000
Retained earnings 12 169 000 12 709 000
Trade and other payables 3 555 000 2 075 000
Shareholders for dividends 745 000 1 150 000
Short term provision – warranty 150 000 200 000
In addition the following items appear (amongst others) in the statement of profit or loss for
the reporting period ended 31 March 2023:
Additional
information R
Revenue 30 400 000
Cost of sales (12 100 000)
Other income 555 000
Income from subsidiary 2 950 000
Income from financial investments 3 720 000
Finance costs 4 (465 000)
Profit before tax 9 985 000
Income tax expense (2 075 000)
Amongst other details, the Profit before tax note includes the following items:
Income
Decrease in warranty provision 20 000
Expenses
Amortisation of intangible assets (120 000)
Depreciation (1 250 000)
Impairment loss – equipment (150 000)
Loss on fair value adjustment on investment property (25 000)
Allowance for doubtful debts (205 000)
Write down of inventory to net realisable value (420 000)
ACCOUNTING 12
_________________________________________________________________________________
_________________________________________________________________________________
Page 4 of 7
Additional information which has already been accounted for:
1. Property, plantx (Pty) Ltd is a manufacturer and retailer of fashion apparel based in the south of
Johannesburg. You have been requested to assist in the preparation of the statement of cash
flows for the reporting period ended 31 March 2023. You’ve been provided with the following
extracted balances from the statement of financial position as at 31 March 2023:
Additional
information R R
2023 2022
Property, plant and equipment 1 9 980 000 8 800 000
Inventories 1 850 000 1 400 000
Trade receivables 5 550 000 4 250 000
Cash and cash equivalents 20 799 000 23 189 000
Retained earnings 12 169 000 12 709 000
Trade and other payables 3 555 000 2 075 000
Shareholders for dividends 745 000 1 150 000
Short term provision – warranty 150 000 200 000
In addition the following items appear (amongst others) in the statement of profit or loss for
the reporting period ended 31 March 2023:
Additional
information R
Revenue 30 400 000
Cost of sales (12 100 000)
Other income 555 000
Income from subsidiary 2 950 000
Income from financial investments 3 720 000
Finance costs 4 (465 000)
Profit before tax 9 985 000
Income tax expense (2 075 000)
Amongst other details, the Profit before tax note includes the following items:
Income
Decrease in warranty provision 20 000
Expenses
Amortisation of intangible assets (120 000)
Depreciation (1 250 000)
Impairment loss – equipment (150 000)
Loss on fair value adjustment on investment property (25 000)
Allowance for doubtful debts (205 000)
Write down of inventory to net realisable value (420 000)
ACCOUNTING 12
_________________________________________________________________________________
_________________________________________________________________________________
Page 4 of 7
Additional information which has already been accounted for:
1. Property, plant and equipment consists of vehicles and equipment.
Equipment
• Equipment with a carrying value of R450 000 was sold for a profit of R78 000 on
a cash basis.
Vehicles
• A vehicle with a cost of R500 000 and accumulated depreciation of R270 000
was written off after a serious accident. The insurer paid out an amount of R195
000 on the claim for the vehicle.
2. Income from subsidiary consists of dividends of R800 000 and management fees of
R150 000.
3. Income from financial investments comprises dividends from the listed investments.
4. All finance costs incurred were paid during the course of the year.
5. A dividend was declared at 31 March 2023.
REQUIRED:
2.1 Provide the reconciliation between profit before tax and cash generated from
operations as it would appear in the calculations to the statement of cash flows of Onyx
(Pty) Ltd for the year ended 31 March 2023. (20)
2.2 Provide the calculation of cash receipts from customers as it would appear within
cash flows from operating activities of the statement of cash flows of Onyx (Pty) Ltd for
the year ended 31 March 2023. (2)
2.3 Provide the calculation of dividends paid as it would appear within cash flows from
operating activities of the statement of cash flows of Onyx (Pty) Ltd for the year ended
31 March 2023. (3)
Reviews
There are no reviews yet.