QUESTION 1
[Link] LTD
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDEN 31 DECEMBER
2024
Revenue (66 800 000 – 120 000) 66 680 000
Cost of sales (30 000 000 +1 200 000 +300 000) (31 500 000)
Group profit 35 180 000
Other income (40 000 + 687 500 +71 872 +660 000 2 309 372
+ 850 000)
Income from subsidiary (600 000+550 000 +825 1 975 000
000)
Income from financial investments 67 000
Distribution costs (2 550 000 + 200 000 +30 000 (14 215 340)
Administration expenses (855 000+ 110 000 +
Other expenses (44 840+510 000+500 000 +700
000 +2 200 000 +230 000 + 1 750 000+ +4 405
500+130 000)
Finance cost (150 000 +790 000) (940 000)
Profit before tax 24 376 032
Income tax (7 988 000)
Profit after tax 16 388 032
2. STATEMENT OF CHANGES IN EQUITY OF DIEMVIEW LTD AS AT 31
DECEMBER 2023
Ordinary share capital Retained income
Balance on 01 January 38 200 000 23 800 000
2024
Changes in equity 2023 —— ——
Issued of share capital 16 500 000 ——
(3000 000 x R5,50)
Profit of the Year —— 16 388 032
Dividend distributed —— (3 750 000)
(15 000 000x0,15) + 1
500 000)
Balance on 31 December 54 700 000 36 438 032
2023
QUESTION 2
2.1 FUN VALLEY (PTY) LTD
STATEMENT OF CASH FLOW FOR THE REPORTING PERIOD ENDED 31
DECEMDER 2023
CASH FLOW FROM OPERATION ACTIVITIES
Receipts from customers (16 540 000 + 80 500 000 – 79 290
17 750 000) 000
Cash paid to suppliers and employees (65 098 00
0)
Cash generated from operations
14 192 00
Dividends received
0
Interest paid (600 000 + 1 600 000 + 336 000)
700 000
Income tax paid (160 000 + 3 600 000 – 280 000)
(2 536 000
NET CASH INFLOW FROM OPERATIONS ACTIVITIES )
CASH FLOW FROM INVESTING ACTIVITIES (3 480 000
)
Purchase of investment property to expand (12 000 000 –
8 000 000) 8 876 000
Construction of plant to expand (4 170 000 – 400 000 –
1 980 000)
(4 000 000
Purchase of plant and equipment to expand )
Purchase of plant and equipment to replace (3 000 000 + (1 790 000
3 000 000) )
Deposit on of plant and equipment (4 560 000
)
Insurance claim proceeds on plant and equipment by fire
(0)
Proceeds on sale of plant and equipment
(1 900 000
Purchase of investment in subsidiary to expand
)
Purchase of financial investments to expand
1 100 000
NET CASH OUTFLOW FROM INVESTING ACTIVITIES 50 000
CASH FLOW FROM FINANCING ACTIVITIES (3 000 000
)
Repayment of specific loan
(950 000)
Repayment of lease liability
(15 050 00
Repayment of bond
0)
Proceeds from shares issued
NET CASH INFLOW FROM FINANCING ACTIVITIES (4 200 000
)
(485 000)
Net increase in cash a cash equivalent
(2 172 000
Cash and cash equivalent at the beginning
)
Cash and cash equivalent at the end
13 000
000
6 143 000
991 500
500 000
1 491 500
2.2
Note 30
Profit before tax (9 600 000 + 3 600 000) 13 200 00
0
Adjusted with non-cash items accounted for against PBT
Amortization (1 240 000 – 940 000)
300 000
Increase in allowance for doubtful debts
90 000
Bad debts written off
500 000
Profit with fair value adjusted – trademarks (3 600 000 –
2 500 000) (1 100 000
Profit with fair value adjusted investment property )
Lost due to plant destroyed by fire (2 000 000 – 800 000) (800 000)
Depreciation – plant (12 040 000 – 9 706 000) – 300 000 1 200 000
Impairment - plant and equipment 2 034 000
Depreciation – Dekvey vehicle (1 400 000 – 700 000) 300 000
Loss in fair value adjustment - listed shares 700 000
Adjusted for items presented separately in SCF 250 000
Interest expense (1 600 000 + 600 000)
Dividends income (400 000 + 300 000) 2 200 000
Insurance compensation (700 000)
Loss on plant sold (240 000 – 50 000) (1 100 000
)
Elimination effect of the accrual bases
190 000
Rent prepaid
Increase in trade receivables (17 750 – 16 540 00)
(50 000)
Increase in trade inventories (13 454 000 – 12 365 000)
(1 210 000
Decrease in trade payables (10 020 000 – 9 307 000)
)
CASH GERERATED FROM OPERATIONS
(1 089 000
)
(713 000)
14 192
000
CALCULATIONS
Investment property
Balance b/ 16 040 00
d 0
Fair value
Purchase 800 000 Balance c/ 28 840 00
d 0
12 000 00
0
28 840 28 840
000 000
Reconstruction of plant and equipment
Balance b/ 2 570 000 Sold 1 200 000
d
Plant 4 170 000 Fire 2 000 000
construction
3 000 000
Loan
4 560 000
Balance c/ 30 100 00
d 0
33 300 000 33 300
000
Reconstruction bond
Balance b/ 11 307 0
d 00
Investment
property 8 000 00
2 172 000
0
Balance c/ 18 735 000
1600
d
000
20 907 000 20 907
000
