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Cash flow Statement

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QUESTION TWO [25] You are presented with the following financial statements (including comparative figures) for the year ended 28 February 2015: STAN (PTY) LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR-ENDED 28 FEBRUARY 2015 Sales 2015 R 16 000 2014 11 000 Stock: 1 March: 240 200 Purchases 7 960 5 600 Stock: 28 February (300) (240) Cost of Sales (7 900) (5 560) Gross Profit 8 100 5 440 Interest on Investment 100 40 Gross Income 8 200 5 480 Distribution (1430) (1010) Salaries 720 660 Advertising 120 90 Vehicle Expenses 190 160 Depreciation: Vehicles 400 100 Administration (1 740) (1 550) Salaries 1 240 980 Depreciation on equipment 100 40 Directors fees 60 260 Audit fees 40 30 Sundry expenses 300 240 Financial (240) (80) Interest on debentures (240) (80) Profit before tax 4 790 2 840 Company tax (1 440) (850) Profit after tax 3 350 1 990 Dividend paid and proposed (1 000) (400 ) Interim 200 150 Proposed 800 250 Retained income for the year 2 350 1 590 STAN (PTY) LIMITED STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2015 R 2014 ASSETS Notes Non-current Assets 11 280 5 720 Tangible 1 10 280 5 320 Investment 2 1 000 400 Current Assets 3 320 2 880 Inventory 300 240 Debtors 2 920 1 760 Cash 100 880 Total Assets 14 600 8 600 EQUITY AND LIABILITIES Share Capital and Reserves 9 750 6 220 Share Capital 3 3 000 2 600 Reserves 4 6 750 3 620 Non-current Liabilities 5 1810 670 Current Liabilities 3 040 1 710 Trade Creditors 740 590 Receiver of Revenue – Tax 1 440 850 Accrued expenses 60 20 Proposed dividends 800 250 Total Equity and Liabilities 14 600 8 600 Notes to the Statement of Financial Position 2015 2014 R‘000 R‘000 R‘000 R‘000 R‘000 R‘000 1. Non-current Assets Cost Dep. To date Book value Cost Dep. To date Book value Premises 8 400 - 8 400 4 400 - 4 400 Equipment 900 (220) 680 440 (120) 320 Vehicles 1 800 (600) 1 200 800 (200) 600 11 100 (820) 10 280 5 640 (320) 5 320 REGENT BUSINESS SCHOOL (RBS) 16 Notes to the Statement of Financial Position 2015 2014 R‘000 R‘000 R‘000 R‘000 R‘000 R‘000 1. Non-current Assets Cost Dep. To date Book value Cost Dep. To date Book value Premises 8 400 - 8 400 4 400 - 4 400 Equipment 900 (220) 680 440 (120) 320 Vehicles 1 800 (600) 1 200 800 (200) 600 11 100 (820) 10 280 5 640 (320) 5 320 2. Investments Netbank: Fixed Deposit – 10% 1 000 400 3. Share Capital R1 Ordinary shares – fully paid 3 000 2 600 4. Reserves 6 750 3 620 Share premium 1 080 300 Retained income 5 670 3 320 5. Non-current Liabilities 1 810 670 12% Debentures 670 670 14% Debentures 1 140 - Required: 2.1 Prepare the Cash Flow Statement for the year ended 28 February 2015. (18) 2.2 Interpret the cash flow patterns (3 activities). (7)