Cheetahs Limited’s Statement of Comprehensive Income for the year ended 31 December 2021 and the Statement of Financial Position as at 31 December 2021 and 2020 are as follows: Statement of Comprehensive Income R million (m) Revenue 723 Less Cost of sales (453) Gross profit 270 Less Distribution costs 71 Administtrative expenses 30 (101) 169 Rental income 27 Operating profit 196 Less Interest payable (26) Profit on ordinary activities before taxation 170 Less Tax on profit on ordinary activities (36) Profit on ordinary activities after taxation 134 Retained profit brought forward from last year 123 257 Less Dividend paid on ordinary shares (60) Retained profit carried forward 197 Statement of Financial Position as at 31 December 2020 and 2021 2020 2021 Rm Rm Non-current assets Property, plant and equipment Land and Buildings 310 310 Plant and machinery 325 314 635 624 Current assets Stock 41 35 Trade debtors 139 145 180 180 Current liabilities Bank Overdraft 56 89 Trade creditors 54 41 Corporation tax 23 18 133 148 Net current assets 47 32 Total assets less current liabilities 682 656 Less Non-current liabilities Debenture loans 250 150 432 506 Equity Ordinary share capital 200 300 Share premium account 40 - Revaluation reserve 69 9 Retained profit 123 197 432 506 During 2021, the business spent R67 million on additional plants and machinery. There were no other non-current asset acquisitions or disposals. There was no share issue for cash during the year. The interest payable expense was equal in amount to the cash outflow. Required: Prepare the Cash Flow Statement with the notes for Cheetahs Ltd for the year ended 31 December 2021.

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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Cheetahs Limited’s Statement of Comprehensive Income for the year ended 31 December 2021 and the Statement of Financial Position as at 31 December 2021 and 2020 are as follows:

Statement of Comprehensive Income

		R million (m)
Revenue		723
Less Cost of sales		(453)
Gross profit		270
Less Distribution costs	71
Administtrative expenses	30	(101)
		169
Rental income		27
Operating profit		196
Less Interest payable		(26)
Profit on ordinary activities before taxation		170
Less Tax on profit on ordinary activities		(36)
Profit on ordinary activities after taxation		134
Retained profit brought forward from last year		123
		257
Less Dividend paid on ordinary shares		(60)
Retained profit carried forward		197

Statement of Financial Position as at 31 December 2020 and 2021

	2020	2021
	Rm	Rm
Non-current assets
Property, plant and equipment
Land and Buildings	310	310
Plant and machinery	325	314
	635	624
Current assets
Stock	41	35
Trade debtors	139	145
	180	180
Current liabilities
Bank Overdraft	56	89
Trade creditors	54	41
Corporation tax	23	18
	133	148
Net current assets	47	32
Total assets less current liabilities	682	656
Less Non-current liabilities
Debenture loans	250	150
	432	506
Equity
Ordinary share capital	200	300
Share premium account	40	-
Revaluation reserve	69	9
Retained profit	123	197
	432	506

During 2021, the business spent R67 million on additional plants and machinery. There were no other non-current asset acquisitions or disposals. There was no share issue for cash during the year. The interest payable expense was equal in amount to the cash outflow.

Required:
Prepare the Cash Flow Statement with the notes for Cheetahs Ltd for the year ended 31 December 2021.

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