The following information was extracted from the records of Rolex Limited for the financial year ended 31 December 2021.
The following information was extracted from the records of Rolex Limited for the financial year ended 31 December 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
Additional information:
* All purchases of inventories are on credit
* The selling and administrative expenses include
* Property, plant and equipment were purchased during the year but there were no disposals
* The total dividends for the year ended 31 December 2021 amounted to R360 000
* The issued share capital consisted of 100 000 ordinary shares
* The market price of the shares on 31 December 2021 was R35
Transcribed Image Text:STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:
ASSETS
2021 (R)
2020 (R)
Non-current assets
3 740 000
2940 000
Property, plant and equipment
3 440 000
2 940 000
Investments
300 000
Current assets
1 080 000
900 000
Inventories
480 000
500 000
Accounts receivable
510 000
320 000
Cash and cash equivalents
90 000
80 000
Total assets
4 820 000
3 840 000
EQUITY AND LIABILITIES
Equity
3 120 000
2 600 000
Ordinary share capital
2 000 000
2 000 000
Retained earnings
1 120 000
600 000
Non-current liabilities
800 000
400 000
Long-term loan
800 000
400 000
Current liabilities
900 000
840 000
Accounts payable
480 000
560 000
Company tax payable
160 000
80 000
Dividends payable
260 000
200 000
Total equity and liabilities
4 820 000
3 840 000
Transcribed Image Text:Use the information provided below to prepare the Cash Flow Statement of Rolex Limited for the year ended 31
December 2021.
INFORMATION
The following information was extracted from the records of Rolex Limited for the financial year ended 31 December
2021.
ROLEX LIMITED
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021
Sales
4 140 000
Cost of sales
(2 020 000)
Gross profit
2 120 000
Selling and administrative expenses
(840 000)
Operating profit
1 280 000
Interest expense
(80 000)
Profit before tax
1 200 000
Company tax
(320 000)
Profit after tax
880 000
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