Question

The following information pertains to Brilliant CC: EXTRACT FROM THE STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2020 2019 ASSETS R R Non-current assets 54 000 50 000 Property, plant and equipment 54 000 50 000 Current assets 38 400 36 000 Inventories 12 400 10 200 Trade receivables (Trade debtors) 10 000 10 400 Other financial assets 12 000 14 000 Cash and cash equivalents. 4 000 1 400 Total assets..... 92 400 86 000 EQUITY AND LIABILITIES Total equity Members' contributions Retained earnings 77 054 52 000 25 054 69 800 47 200 22 600 Total liabilities Non-current liabilities.... Long-term borrowings 16 346 6 200 6 200 16 200 4 200 4 200 Current liabilities. Trade and other payables (Trade creditors). Current tax payable. 10 146 8 000 2 146 12 000 10 000 2 000 EXTRACT FROM THE STATEMENT OF PROFIT/LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2020 R Revenue 162 000 Cost of sales (133 000) Gross profit 29 000 Other income 6 600 Distribution, administrative and expenses (28 800) Finance costs interest on long-term loans) Profit before tax 6 400 Income tax expense (2 146) Profit for the year 4 254 Other comprehensive income for the year Total comprehensive income for the year 4 254 (400) 36

Answer 1

7) 2500

8) (6700)

9) 6800

10) 4000

Cash flow from operating activities

            Net income                                                     = 4254

            Depreciation                                                   = 2700

            Change in inventories                                    = (2200)

            Change in trade receivables                           = 400

            Change in other financial assets                    = 2000

            Change in trade and other payables               = (2000)

            Change in tax payable                                    = 146

            Profit distribution                                           = (2800)

            Net cash provided by operating activities     = 2500

Cash flow from investing activities

            Purchase computer                                         = (6700)

            Net cash used in the investing activities       = (6700)

Cash flow from financing activities                                   

            Loan acquired                                                 = 2500

            Repayment of loan                                         = (500)

            Members contribution                                   = 4800

            Net cash provided by financing activities     = 6800

Total cash inflows                                                     = 2600

            Cash balance, beginning                                = 1400

            Cash balance, ending                                     = 4000

            Purchase of equipment = beginning amount- depreciation –ending balance           

                                                = 50000-2700-54000 = 6700

            Members contribution = 52000-47200 = 4800