Centurion Ltd
Information extracted from the Statement of Comprehensive Income for the
year
ended 31 December 2015 and 2014:
2015(R)
2014(R)
Sales
Cost of sales
1 856 000
(1 280 000)
1 200 000
(750000)
Gross profit
Operating expenses
576 000
(291 200)
450 000
(212 000)
Depreciation
30 000
26 000
Other operating expenses
261 200
186 000
Operating profit
284 800
238 000
Interest on mortgage loan
(24 000)
(72 000)
Net profit before tax
Income tax
260 800
(90 240)
166 000
(58 100)
Net profit after tax
170 560
107 900
Information extracted from the Statement of Financial Position as at 31
December
2015 and 2014
2015(R)
2014( R )
ASSETS
Non-current assets
2 464 160
Property, plant and equipment (fixed assets)
2 464 160
196
2 444
000
2 444
000
338
000
250
000
64
000
24 000
2 820
2 782 000
356
Current assets
000
Inventories (all Trading stock)
120
000
Trade & other receivables
40
000
Cash & cash equivalents
000
160
EQUITY AND LIABILITIES
Equity
2 437 560
Ordinary share capital (issued at R10 per share)
1 900 000
1 600 000
Share premium
280 000
160 000
Retained income
257 560
220 000
Non-current liability (Mortgage loan, 12% p.a.)
200 000
602 000
Current liabilities
182 600
Trade & other payables
1 980 000
200
000
98 000
138 000
8 600
76 000
6 000
56 000
2 820 160
2 782 000
SARS (Income tax)
Shareholders for dividends
Additional information
New shares were issued on the first day of the financial year.
Interim and final dividends for the year ended 31 December 2015 amounted
to R133 000.
Fixed assets were sold at carrying (book) value during the year for R144 000.
Required:
1.1 Study the information provided by Centurion Limited and prepare the
statement of cash
flows (using the indirect method) for the year ended 31 December 2015.
1.2 Study the statement of cash flows prepared in 1.1 above and comment
on your
findings.
