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INFORMATION The information provided below was atracted from the accounting records of Harmony Limited on 31 December 2020 Harmony Limited Extract of Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 6 600 000 Cost of sales (3 900 000) Gross profit 2 700 000 Operating expenses (1 710 000) Selling and administrative expenses 1 260 000 Depreciation 450 000 Operating profit 990 000 Interest expense (270 000) E Highght bre Wepene (270000) Probefore 720 000 Company tax 240000 Poltron 4000 Extract of Statement of Changes in Equity for the year ended 31 December 2020 Retained erings R 1 500 000 Balance on 01 January 2020 R Balance on 01 Juny 2020 1 500 000 Proffertas 480 000 Dividends paid and proposed in 2020 (180 000) Belongs on 31 December 2010 1 800 000 Ralances extracted from the Statement of Financial Position as at 31 December: 2020 2019 R R Plant and equipment 3750 000 3000 000 Investments 210 000 240 000 Inventories 1 290 000 1 230 000 Accounts receivable 1 140 000 1 050 000 Cash and cash equivalents 300 000 210 000 Ordinary share capital 1860 000 1 860 000 Retained eamings 1 800 000 1 500 000 360 000 210 000 Long-term loan 2 520 000 1962 000 Accounts payable 1420.000 150 000 Dividends payable Retained eamings 1 800 000 1 500 000 Long-term loan 360 000 210 000 Accounts payable 2 520 000 1 962 000 Dividends payable 120 000 150 000 Income tax payable 30 000 48 000 Note: (a) Plant and equipment was purchased but there was no disposal (b) The number of ordinary shares in issue was 930 000 (c) All purchases and sales of inventory were on credit ( ) (d) Credit terms to debtors are 30 days. Debtors took approximately 28 days to settle their accounts during 2019

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