Additional information 1. Operating expenses include depreciation expense of R34 000 and amortisation of prepaid expenses of R 2 000. 2. Land was sold at its book value for cash. 3. Cash dividend of R48 000 was paid in 2018. 4. Interest expense of R8 000 was paid in cash. 5. Equipment with a cost of R36 000 was purchased for cash. Equipment with a cost of R24 000 and a book value R18 000 was sold for R16 000 for cash. 6. Loans were redeemed at their book value for cash. 7. Ordinary shares were for cash. Required Use the information provided to prepare the cash flow statement using the direct method.
Additional information 1. Operating expenses include depreciation expense of R34 000 and amortisation of prepaid expenses of R 2 000. 2. Land was sold at its book value for cash. 3. Cash dividend of R48 000 was paid in 2018. 4. Interest expense of R8 000 was paid in cash. 5. Equipment with a cost of R36 000 was purchased for cash. Equipment with a cost of R24 000 and a book value R18 000 was sold for R16 000 for cash. 6. Loans were redeemed at their book value for cash. 7. Ordinary shares were for cash. Required Use the information provided to prepare the cash flow statement using the direct method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Additional information
1. Operating expenses include depreciation expense
of R34 000 and amortisation of prepaid expenses of R
2 000.
2. Land was sold at its book value for cash.
3. Cash dividend of R48 000 was paid in 2018.
4. Interest expense of R8 000 was paid in cash.
5. Equipment with a cost of R36 000 was purchased
for cash. Equipment with a cost of R24 000 and a book
value R18 000 was sold for R16 000 for cash.
6. Loans were redeemed at their book value for cash.
7. Ordinary shares were for cash.
Required
Use the information provided to prepare the cash flow
statement using the direct method.
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