90.2K

Verified Solution

Link Copied!

The annual financial statements of Bongo $($Pty$)$ Ltd are in the final stages of completion for the

year ended $30$ June $2023.$ The following information was extracted to prepare the statement of

cash flows for the current financial year.

Bongo $($Pty$)$ Ltd

Statement of financial position as at $30$ June $2023($with comparative values for $30$ June $2022)$:

ASSETS

Equipment at carrying amount

Inventory

Trade receivables

Bank

Total Assets

EQUITY AND LIABILITIES

Equity

Ordinary share capital

Retained earnings

Liabilities

Long term borrowings

Trade payables

Income received in advance

SARS: Tax payable

Total Equity and Liabilities

$30$ June $2023$

$R$

$909600$

Additional Information:

$1$ Authorised share capital: $1000000$ Ordinary shares

$2$ Issued share capital: $100000$ Ordinary shares were sold for cash during the current

financial period.

$3$ Dividends of R$30000$ were declared and paid on $20$ June $2023.$

$4$ Equipment with a carrying amount of R$240000$ was sold and new equipment was

purchased during the current financial year.

Bongo $($Pty$)$ Ltd raised a long term loan of R$168000$ in May $2023.$

$6$ The following information was extracted from the statement of comprehensive income

for the year ended $30$ June $2023$:

Sales for the year was R$1464000$

Rental income was R$26400.$

Profit on disposal of equipment R$36000$

Depreciation R$48000$

Interest expense R$50400$

Income tax expense R$147600$

Profit after tax R$222000.$

Required:

Prepare the statement of cash flows for Bongo $($Pty$)$ Ltd for the financial year ended

$30$ June $2023$ in compliance with the requirements of the International Financial Reporting

Standards $($IFRS$)$ in as much as the given information allows. Use the indirect method.

Answer & Explanation Solved by verified expert

See Answer