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The following information was extracted from the records of Rolex Limited for the financial year ended 31 December 2021.

The following information was extracted from the records of Rolex Limited for the financial year ended 31 December 2021.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 7MC
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Additional information:

* All purchases of inventories are on credit

* The selling and administrative expenses include depreciation of R320 000

* Property, plant and  equipment were purchased during the year but there were no disposals 

* The total dividends for the year ended 31 December 2021 amounted to R360 000

* The issued share capital consisted of 100 000 ordinary shares

* The market price of the shares on 31 December 2021 was R35

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS 2021 (R) 2020 (R) Non-current assets 3 740 000 2940 000 Property, plant and equipment 3 440 000 2 940 000 Investments 300 000 Current assets 1 080 000 900 000 Inventories 480 000 500 000 Accounts receivable 510 000 320 000 Cash and cash equivalents 90 000 80 000 Total assets 4 820 000 3 840 000 EQUITY AND LIABILITIES Equity 3 120 000 2 600 000 Ordinary share capital 2 000 000 2 000 000 Retained earnings 1 120 000 600 000 Non-current liabilities 800 000 400 000 Long-term loan 800 000 400 000 Current liabilities 900 000 840 000 Accounts payable 480 000 560 000 Company tax payable 160 000 80 000 Dividends payable 260 000 200 000 Total equity and liabilities 4 820 000 3 840 000
Transcribed Image Text:STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS 2021 (R) 2020 (R) Non-current assets 3 740 000 2940 000 Property, plant and equipment 3 440 000 2 940 000 Investments 300 000 Current assets 1 080 000 900 000 Inventories 480 000 500 000 Accounts receivable 510 000 320 000 Cash and cash equivalents 90 000 80 000 Total assets 4 820 000 3 840 000 EQUITY AND LIABILITIES Equity 3 120 000 2 600 000 Ordinary share capital 2 000 000 2 000 000 Retained earnings 1 120 000 600 000 Non-current liabilities 800 000 400 000 Long-term loan 800 000 400 000 Current liabilities 900 000 840 000 Accounts payable 480 000 560 000 Company tax payable 160 000 80 000 Dividends payable 260 000 200 000 Total equity and liabilities 4 820 000 3 840 000
Use the information provided below to prepare the Cash Flow Statement of Rolex Limited for the year ended 31 December 2021. INFORMATION The following information was extracted from the records of Rolex Limited for the financial year ended 31 December 2021. ROLEX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 Sales 4 140 000 Cost of sales (2 020 000) Gross profit 2 120 000 Selling and administrative expenses (840 000) Operating profit 1 280 000 Interest expense (80 000) Profit before tax 1 200 000 Company tax (320 000) Profit after tax 880 000
Transcribed Image Text:Use the information provided below to prepare the Cash Flow Statement of Rolex Limited for the year ended 31 December 2021. INFORMATION The following information was extracted from the records of Rolex Limited for the financial year ended 31 December 2021. ROLEX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 Sales 4 140 000 Cost of sales (2 020 000) Gross profit 2 120 000 Selling and administrative expenses (840 000) Operating profit 1 280 000 Interest expense (80 000) Profit before tax 1 200 000 Company tax (320 000) Profit after tax 880 000
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