based on the enclosed images, what is the correct amount that must be disclosed as increase (decrease) in trade receivables in the cash generated from operations section of 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.

Introduction Cash flow from operating activity In indirect method of preparing cash flow statement…

based on the enclosed images, what is the correct amount that must be disclosed as increase (decrease) in trade receivables in the cash generated from operations section of the statement of cash flows of Moletji Limited for the year ended 31 December 2020?

based on the enclosed images, what is the correct amount that must be disclosed as increase (decrease) in trade receivables in the cash generated from operations section of 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

See similar textbooks

Similar questions

Sheridan Company completed its first year of operations on December 31. 2022. It initial income statement showed that Sheridan had sales revenue of $190,900 and operating expenses of $73,200. Accounts receivable and accounts payable at year-end were $63,900 and $31,600 respectively. Assume that accounts payable related to operating expenses. Inore income taxes. Compute net cash provided by operating activities using the direct method. (Show amo wnts that decrease cosh fow with either a sign eg 1s oog orinparenthesises (15,000) Net cash provided by operating activities
You have been asked to prepare the statement of cash flows for Neo Ltd for the year ended 30 November 2021. The most recent income statement and statement of financial position (with comparatives for the previous year) of Neo Ltd are set out below. Neo Ltd – Income Statement for the year ended 30 November 2021 Revenue 104,567 Cost of sales (71,358) Gross profit 33,209 Profit on disposal of property, plant and equipment 106 33,315 Distribution costs (12,789) Administrative expenses (16,371) Profit from operations 4,155 Finance costs (608) Profit before tax 3,547 Тах (726) Profit for the period 2,821
Which of the following transactions would not appear on a statement of cash flows prepared by the direct method? A net loss from operations O The payment of cash dividends that were declared last year The amount paid to acquire treasury stock Payment of last year's income tax liability
125. accountig
The following Information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash provided by financing activities Dividends paid Loss from discontinued operations, net of tax savings of $39,700 Income tax expense Other selling expenses Net sales Advertising expense Accounts receivable Cost of goods sold General and administrative expenses Net sales Cost of goods sold Gross profit Expenses: Required: a. Calculate the operating Income for Manahan Co. for the year ended December 31, 2019. Advertising expense General and administrative expenses Operating income MANAHAN CO. Operating Income Statement For the year ended December 31, 2019 b. Calculate the company's net Income for 2019. Net income $ $119,000 18, 200 119,100 $ 27,288 11,500 646,600 47,000 59,300 368,562 141,800 0 0 0
The cash flows below were extracted from the accounts of Willow Ltd shop owner. Required: Prepare a statement of cash flows using the direct method for the year ended 31 December 2020. Prepare a separate reconciliation statement to see how this relates to the cash of the business at the beginning and end of the year. What does the statement of cash flows tell us about a business.
Accounts receivable from sales transactions were $49,313 at the beginning of the year and $62,098 at the end of the year. Net income reported on the income statement for the year was $122,531. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be
If Accounts receivable increase by R.O.100,000. Income reported the income statement for the year was R.O.2,800,000. Excluding of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is Select one: a. R.O.3,500,000b. R.O.2,800,000 c R.O.2,700,000 d. R.O.2,900,000
Cromwell Company has the following trial balance account balances, given in no certain order, as of December 31, 2018. Using the information provided, prepare Cromwell’s annual financial statements (omitthe Statement of Cash Flows)
1. Calculate the cash operating cycle of Stone Limited for the year ended 30 April, 2018 and 2019.2. Calculate the comparative ratios for Stone limited for the year ended 30 April 2019. (to two decimal places where appropriate).3. Based on the result of the previous year end and the industry average. Draft a report addressed to the Board of Directors of Stone Limited analysing the performance of the company for the year 2019
Sales Cost of goods sold Depreciation Other operating expenses Income tax Loss on sale of equipment Gain on sale of investment Net earnings and comprehensive income As at December 31 Cash Accounts receivable Inventory Equipment Less: accumulated depreciation Investment Total Accounts payable Income tax payable Bonds payable Common shares Retained earnings Total $193,800 25,400 76,100 43,800 3,000 (2,300) 20X2 $ 69,300 89,600 187,700 556,300 (231, 200) 54,700 $ 726,400 $ $510,000 339,800 $170, 200 20X1 $ 55,200 102, 600 175,400 475,400 (229,100) 79,000 $ 658,500 62,000 10,000 45,700 307, 200 301,500 $ 726,400 $ 658,500 $ 104,100 7,000 307, 200 240, 200 Additional information: During the year, equipment with an original cost of $99,800 was sold for cash.
Shamrock Inc.'s accounts receivable arising from sales to customers amounted to $94000 and $83000 at the beginning and end of 2022, respectively. Income reported on the income statement for 2022 was $297000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is $391000. $297000. $308000. $286000.