Homework answers / question archive / Marked tutorial block 4 Ignore VAT EL Dragon Pty Ltd) (EL) is an unlisted company that sells cycling equipment throughout South Africa

Marked tutorial block 4 Ignore VAT EL Dragon Pty Ltd) (EL) is an unlisted company that sells cycling equipment throughout South Africa

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Marked tutorial block 4 Ignore VAT EL Dragon Pty Ltd) (EL) is an unlisted company that sells cycling equipment throughout South Africa. The company was started by Miguel Garza after he struggled to find good replacement parts for his cycling equipment. El Dragon's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). The financial manager, Ms Jessy is busy preparing the Cash Flow Statement for the year ended 28 February 2020. She does not understand why the Cash Flow Statement, unlike the other annual financial statements, is prepared on the cash basis. She has approached you to assist her with a few matters The following extract of the trial balance was obtained from the accounting software package for 2020 and 2019 4,5 4,5 3 EL Dragon (Pty) Ltd Trial balance extract for the years ended 28 February Retained earnings Share Capital Revaluation Surplus Debentures Inventory Trade Receivables Trade payables Income received in advance Prepaid expenses Shareholders for dividends Dividends withholding tax payable SARS receivable/payable) 2020 R' Debit/Credit) 17 210 000) 15 000 000) (2 000 000) ? 345 000 2600 000 (113 000) (110 000) 23 000 120 000) 124 000) 11 000 2019 R Debit/Credit) (7 340 000) 3 000 000 (550 000) 2 105 000 2150 000 (102 0001 (80000) 17 100 176 000) (152001 (7000) 1,2 5 S
3 1,2 Debentures Inventos Trade Receivables Trade payables Income received in advance Prepaid expenses Shareholders for dividends Dividends withholding tax payable SARS receivable/payable) 35 000 2600 000 (113 000) (110 000) 23 000 (120 000) (24000) 11 000 105 000 2150 000 (102 000) (80 000) 17 100 76 000) (15200) 7000) unun | Additional information: 1. The following information, among others, was obtained from the statement of comprehensive income of El Dragon for the year ended 28 February Sales Cost of sales Other operating expenses Interest income Profit before tax Profit after tax 2020 R 1 290 000 750 000 220 000 15 000 366 000 243 000 2019 R 1 090 000 623 000 245 000 9200 237 000 210 000 Included in operating expenses are credit losses related to Ms Veronica Ms Veronica, a long outstanding debtor was dedaned insolvent during the current accounting period. R7 500 was
received from her estate on 1 November 2019 and this represents 30% of the balance owing by Ms Veronica. Other operating expenses do not include any depreciation, amortisation or profit or loss from disposal of assets. 2. Trade receivables are presented net of allowance for credit losses of R13 000 (2019: R9 000). 3. EL issued 3 000 10% debentures of R150 at a premium of 6X on 1 March 2019. Coupon payments are made half yearly on 30 August and 28 February each year. The debentures will be redeemed on 28 February 2024, at pari 4. El declared a capitalisation issue of 50 000 shares during the current period. El plans to acquire additional land and buildingsin the next accounting period, 100 000 shares were issued to existing shareholders for cash to raise the required tunde, 5. EL declared an interim dividend an 30 August 2019. The total dividend payments for the year amounted to R100 000 6. Interest and dividend cast with
Block 4 Marked tutorial (40 marks :60 minutes) You are required to: Prepare only the following sections of the Statement of Cash flows of El Dragon (Pty) Ltd for the year ended 28 February 2020 on the direct method: a. Cash flows from operating activities 29 marks 10 Marks b. Cash flows from financing activities Presentation marks Total 1 mark 40 marks Comparative figures are not required. Show all calculations clearly. Round off all calculations to 2 decimal places. Ignore VAT
Marked tutorial block 4 nore VAT El Dragon Pty Ltd (EL) is an unlisted company that sells cycling equipment throughout South Africa. The company was started by Miguel Garte after he struggled to find good replacement parts for his cycling equipment. El Dragon's financial statements are prepared in accordance with international Financial Reporting Standards (IFRS). The financial manager, Ms Jessy is busy preparing the Cash Flow Statement for the year ended 28 February 2020. She does not understand why the Cash Flow Statement, unlike the other annual financial statements, is prepared on the cash basis. She has approached you to assist her with a few matters. The following extract of the trial balance was obtained from the accounting software package for 2020 and 2019 2019 4,5 4,5 3 EL Dragon (Pty) Ltd Trial balance extract for the years ended 28 February Retained earnings Share Capital Revaluation Surplus Debentures Inventory Trade Receivables Trade payables Income received in advance Prepaid expenses Shareholders for dividends Dividends withholding tax payable SARS receivable/(payable) 2020 R Debit/Credit) 17 210 000) (5 000 000) 12 000 000) ? 345 000 2600 000 (113 000) (110 000) 23 000 (120 000) (24 000) 11 000 1,2 Debit/Credit) 17 340 000) 13 000 000 (550 000 ? 105 000 2150 000 (102 000 (80 000) 17 100 (76 000 (15200) 17 000) 5 5 Additional information: 1. The following information, among others, was obtained from the statement of comprehensive income of El Dragon for the year ended 28 February Sales Cost of sales Other operating expenses Interest income Profit before tak Profit after tax 2020 R 1 290 000 750 000 220 000 15 000 366 000 243 000 2019 R 1 090 000 623 000 245 000 9200 237 000 210 000 Included in operating expenses are credit losses related to Ms Veronica. Ms Veronica, a long outstanding debtor was declared insolvent during the current accounting period. R7 500 was received from her estate on 1 November 2019 and this represents 30% of the balance owing by Ms Veronica Other operating expenses do not include any depreciation, amortisation or profit or loss from disposal of assets