Required: Prepare the Cash flow statement of Rockgrip Industries for the year ending 30 June 2020 using the indirect method.
Required: Prepare the Cash flow statement of Rockgrip Industries for the year ending 30 June 2020 using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![QUESTION THREE
[50]
The following extracts of the financial statements of Rockgrip Industries were presented to you:
Statement of Comprehensive Income (Income statement) for the year ended 30 June:
2020
8 260 000
(2 020 000)
6 240 000
(4 860 000)
1380 000
180 000
1 200 000
320 0001
880 000
Sales
Cost of sales
Gross profit
Operating expenses
Operating pront
Interest expense
Profit before tax
Tax
Profit after tax
Assets
Non-current assets
Omice machinery
Motor vehicles
Current assets
Statement of Financial Position (Balance sheet) as at 30 June:
2020
Inventories
Debtors
Bank
Equity and Liabilities
Owners equity
Ordinary share capital
Retained earnings
Non-current llabilities
10% Debentures-2019
Current llabllides
Creditors
Receiver of revenue: Tax
Dividend payabile
3 600 000
1120 000
600 000
500 000
320 000
2 000 000
1640 000
1 800 000
2015
6 060 000
(1520 000)
4 540 000
(3 960 000)
580 000
80 000)
500 000
300 000
120 000
280 000
120 000)
380 000
4 720 000
1420 000
6140 000
3 640 000
1 800 000
700 000
6 140 000
3 200 000
1240 000
480 000
520 000
380 000
3 000 000
1120 000
800 000
560 000
60 000
260 000
2019
14 440 000
1380 000
5 820 000
4 120 000
800 000
900 000
5820 000
Additional information:
1. All sales and purchases are made on
credit.
2. Depreciation included in operating
expenses for the year ending 30 June
2020:
Office machinery R200 000 and Motor
vehicles R240 000. No asset was sold
during this period.
3. Inventories for the year ending 30
June 2018 amounted to R460 000.
4. Dividend declared for the year ended
30 June 2020 amounted to R360 000.
5. The ordinary shares have a par value
of R1
Required:
Prepare the Cash flow statement of
Rockgrip Industries for the year
ending 30 June 2020 using the
indirect method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b9cb804-023a-4f71-be0b-ec9aa4c1e205%2Fb60d80c7-462f-48f0-a5cf-5e763d6fcae8%2F9zkvc2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION THREE
[50]
The following extracts of the financial statements of Rockgrip Industries were presented to you:
Statement of Comprehensive Income (Income statement) for the year ended 30 June:
2020
8 260 000
(2 020 000)
6 240 000
(4 860 000)
1380 000
180 000
1 200 000
320 0001
880 000
Sales
Cost of sales
Gross profit
Operating expenses
Operating pront
Interest expense
Profit before tax
Tax
Profit after tax
Assets
Non-current assets
Omice machinery
Motor vehicles
Current assets
Statement of Financial Position (Balance sheet) as at 30 June:
2020
Inventories
Debtors
Bank
Equity and Liabilities
Owners equity
Ordinary share capital
Retained earnings
Non-current llabilities
10% Debentures-2019
Current llabllides
Creditors
Receiver of revenue: Tax
Dividend payabile
3 600 000
1120 000
600 000
500 000
320 000
2 000 000
1640 000
1 800 000
2015
6 060 000
(1520 000)
4 540 000
(3 960 000)
580 000
80 000)
500 000
300 000
120 000
280 000
120 000)
380 000
4 720 000
1420 000
6140 000
3 640 000
1 800 000
700 000
6 140 000
3 200 000
1240 000
480 000
520 000
380 000
3 000 000
1120 000
800 000
560 000
60 000
260 000
2019
14 440 000
1380 000
5 820 000
4 120 000
800 000
900 000
5820 000
Additional information:
1. All sales and purchases are made on
credit.
2. Depreciation included in operating
expenses for the year ending 30 June
2020:
Office machinery R200 000 and Motor
vehicles R240 000. No asset was sold
during this period.
3. Inventories for the year ending 30
June 2018 amounted to R460 000.
4. Dividend declared for the year ended
30 June 2020 amounted to R360 000.
5. The ordinary shares have a par value
of R1
Required:
Prepare the Cash flow statement of
Rockgrip Industries for the year
ending 30 June 2020 using the
indirect method.
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