Dash (Pty) Ltd provided the following information that was extracted from the financial records for the year ended 31 December 2021. Relevant financial information are shown below.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dash (Pty) Ltd provided the following information that was extracted from the financial records for the year ended 31 December 2021. Relevant financial information are shown below.

 

Information from the statement of financial position as at 31 December:

 

2021 

R

2020

R

Land and buildings at cost 620 000 520 000
Equipment at carrying amount 268 000 343 000
-Cost 354 000 441 000
-Accumulated depreciation (86 000) (98 000)
Fixed deposits 70 000 100 000
Inventory 66 000 100 00
Debtors control 64 000 70 000
Bank – favourable (debit) balance 86 000 -----
Prepaid expense – Rent ----- 6 000
Creditors control 26 000 48 000
Bank overdraft – credit balance ----- 6 000
SARS - tax payable 22 000 18 000
Shareholders – dividends payable 30 000 75 000
Interest payable 10 000 12 000
Ordinary share capital 850 000 750 000
Retained earnings 96 000 30 000
Long term borrowings 140 000 200 000

Extract of items shown on the statement of profit and loss and other comprehensive income for the year ended 31 December 2021:                       

  R
Interest income on fixed deposit 30 000
Depreciation 38 000
Loss on sale of equipment 1 000
Interest on long term borrowings 32 000
Income tax expense 86 000
Profit for the year 141 000

Additional information:
1. Inventory is disclosed at cost.
2. Land has not been revalued in the current financial year.
3. An extension was added to the building and completed in the current financial year. All building costs were paid for in cash. Buildings are not depreciated.
4. Interest on the long term loan is not capitalised.
5. No equipment was purchased during the current financial year but some equipment was sold during the year for cash.
6. Dividends for the year as shown in the statement of changes in equity was R75 000.

Required:
Prepare the statement of cash flows of Dash (Pty) Ltd for the year ended 31 December 2021 to comply with the International Financial Reporting Standards (IFRS) in as much as the above information allows. Use the indirect method. Comparative figures are not required.

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