QUESTION TWOThe following information relates to ABC Pty Ltd, a business that manufactures electric productsoperating in Pretoria.Statement of Financial Position Information as at 31 December 2015 and 20162015 (R)400 000100 00015 00025 00090 000300 000130 000Ordinary Shares Capital (R1)Preference Share Capital (RO.50)Share PremiumRetained EarningLong Term Loan from AB bank.Land and Buildings at costMachinery and Equipment at costMachinery and Equipment: Accumulated DepreciationFixed Deposits (at Standard bank)InventoryTrade DebtorsBank (Dr)Petty CashCash in HandTrade CreditorsBank OverdraftIncome tax payableShareholders for dividendsInterest Payable43 00035 00031 00040 000115 0005 000ItemInterest Income from fixed depositsDepreciation Charge for the yearLoss of sale of machinery and equipmentInterest on long term loanIncome tax expenseProfit for the yearOrdinary dividendsPreference dividends18 00015 00015 0005 000ettExtract of items disclosed in the Statement of Comprehensive Income for the year ended 31December 2016:Amount (R)13 00029 0001 50014 00047 00090 50020 0006 0002016 (R)500 000100 00017 500115 00060 000320 00080 00049 00050 00050 00035 0005 0004 50025 0002 00013 00025 0006 000NB: Use the Indirect method. Comparative figures and notes are not required.Additional Information:1) No machinery and equipment were purchasing during the financial year. Machinery andequipment were sold for R85 500 of which R45 500 was on still outstanding.2) The new property which was acquired is situated at Site 100 Thabo Sehume, Pretoria. Thecompany plans to use it as its warehousing sites.3) Inventory is recorded at cost.4) The shares issued in March 2016.Required:Prepare the Statement of Cash Flows for ABC Pty Ltd for the year ended 31 December 2016 incompliance with the requirements of GAAP as stipulated in IAS 7.

There are two ways of making a cash flow statement direct and indirect. The difference between them…

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Business

Accounting

The following information relates to ABC Pty Ltd, a business that manufactures electric products operating in Pretoria.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 15SP

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