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Question 5 The following information was obtained from the accounting records of DBE Ltd on 31 December 2018, which is its financial year-end. The company has an authorized share capital of 750 000 ordinary shares. 1. Extract from the Income Statement for the year ended 31 December 2018: Interest on loan 27 000 Interest on overdraft 380 Depreciation 58 000 Income tax 23 000 Net profit before income tax 100 000 b. Information from the Balance Sheet: 2018 2017 Ghc Ghe Ordinary share capital 678000 440 000 Retained income 73 000 56 000 Loan: TK Bank 130 000 170 000 Fixed assets (carrying value) 549 000 420 000 Inventory 61 000 73 000 Trade and other receivables 214 320 150 600 Bank (favourable) 30 130 Bank overdraft 10 000 Cash float 1 000 1 000 Trade and other payables 158 400 152 550 Income tax 4000 (Dr) 10 000 (Cr) Shareholder dividends 28 000 22 000 *Included above in Trade and other receivables and Trade and other payables. C. Total dividends for the year amounted to R60 000 D. New equipment was purchased, and a vehicle was sold during the year, at its carrying value of R17000 E. Shares to the value of R400 000 were repurchased during the year. This transaction was recorded REQUIRED a. Prepare the cash flow statement using the direct method CR(8 Marks) b. Prepare the statement of cash flow using the indirect method CR(8 Marks) c. Explain your finding concerning the performance of the company. AP(4 Marks) [Total: 20 Marks

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