Based on the attached image. what is the correct amount of total separately disclosable items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Moletji Limited for the year ended 31 December 2020? Moletji Ltd is public company owned by two prominent business women and the local community trust around the CapricornDistrict Municipality. The company was founded in the year 2018 and the following information pertains to the company:Extract of accounts pertaining to the statement of financial position as at 31 December:20202019RLong-term loan112 50089 100Loans to directors47 90013 800Loans from shareholders11 10034 100Trade payables control59 90048 000Accrued security expense7 1001 800Land and buildings at cost758 700615 500Vehicles at cost267 100130 100Furniture at cost86 00071 300Investments at fair value168 700Accumulated depreciation: Vehicles62 60047 600Accumulated depreciation: Furniture15 70013 300Share capital: ordinary shares515 200266 800Share capital: 12% preference sharesRetained earnings265 500177 900484 100370 400Inventory115 70077 200Dividends payable46 90014 900Dividends receivable3 0002 500SARS (income tax)46 900Dr 103 800Trade receivables control66 40077 900Prepaid expenses (advertising)7 9005 500Bank37 6002 100Items disclosed in the statement of profit or loss and other comprehensive income for the year ended 31 December2020:RRevenue2 107 300Cost of sales780 500Profit on sale of non-current assets: furniture900Loss on sale on listed investments3 600Dividend income: listed investments8 900Fair value gain: listed investments14 900Other operating expenses140 600Administrative expenses (including salaries and wages)161 700Depreciation51 500Loss on sale of non-current asset: vehicle12 100Interest expense11 500Income tax expense232 100Profit for the year597 600 Additional information:1. The following relates to property, plant and equipment:• On 31 October 2020, a vehicle with a cost price of R71 000 and accumulated depreciation of R50 000 (on 1January 2020) was sold for cash. A replacement vehicle was bought on 1 December 2020.On 20 June 2020, furniture with a cost price of R4 000 and accumulated depreciation of R1 200 was sold forcash. A replacement furniture was bought on 31 July 2020.All other purchases were in cash.2. It is the accounting policy of the company to provide for depreciation as follows:Vehicles: According to the diminishing balance method, at 20% per annum.• Furniture: According to the straight-line method, at 25% per annum.3. The following relates to the shares of the company:On 31 August 2020, the shareholders approved the capitalisation issue of one (1) ordinary share for every four (4)ordinary shares held. On that date the number of ordinary shares issued were 98 000 shares. The capitalisationissue was done from retained earnings at R0,50 per share. All other issued shares were paid for in cash.• The company allotted and issued 45 000 ordinary shares and 12% preference shares on 31 October 2020.• On 15 December 2020, the company declared an ordinary dividend of 30 cents per share.4. The investments consist of listed shares in Mankweng Ltd, bought for R3 each on 1 January 2020. The company sold4 000 of these shares on 30 November 2020.5. The following relates to loans for the company:Interest on long-term loans is capitalised.Loans to directors are interest free and immediately callable.Loans from shareholders are interest free and repayable on 30 November 2022.

Cashflow from Operating Activities - It shows the amount of money comes in the company from its…

Based on the attached image. what is the correct amount of total separately disclosable items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Moletji Limited for the year ended 31 December 2020?

Based on the attached image. what is the correct amount of total separately disclosable items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Moletji Limited for the year ended 31 December 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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