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Cash Flow Statement exercise, Exams of Financial Accounting

Walter Sisulu University for Technology and ScienceFinancial Accounting

These two documents are for practise purposes for Cash Flow Statement IAS 7.

Typology: Exams

2025/2026

Available from 04/13/2026

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LECTURE EXAMPLE 13
COMPLETE CASH FLOW STATEMENT
Retailer Limited
Statement of financial position of Retailer Limited as
at 31 December 2024
2024 2023
Assets
Non-current assets
PPE (Note 1) 7 242 700 6 450 000
Current assets
Inventory 5 000 000 4 750 000
Prepaid expenses 400 000 175 000
Trade receivables 5 500 000 2 750 000
Bank 1 897 300 0
20 040 000 14 125 000
Equity
Share capital 1 750 000 1 000 000
Share premium 2 000 000 1 200 000
Revaluation surplus 700 000 500 000
Retained earnings 4 685 000 1 562 500
Non-current Liabilities
Loans 3 000 000 4 000 000
Current liabilities
Trade payables 7 000 000 3 500 000
pf3
pf4
pf5

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LECTURE EXAMPLE 13

COMPLETE CASH FLOW STATEMENT

Retailer Limited Statement of financial position of Retailer Limited as at 31 December 2024 2024 2023 Assets Non-current assets PPE (Note 1) 7 242 700 6 450 000 Current assets Inventory 5 000 000 4 750 000 Prepaid expenses 400 000 175 000 Trade receivables 5 500 000 2 750 000 Bank 1 897 300 0 20 040 000 14 125 000 Equity Share capital 1 750 000 1 000 000 Share premium 2 000 000 1 200 000 Revaluation surplus 700 000 500 000 Retained earnings 4 685 000 1 562 500 Non-current Liabilities Loans 3 000 000 4 000 000 Current liabilities Trade payables 7 000 000 3 500 000

  • Accrued expenses
  • Accrued interest expense
  • SARS (Income tax & STC)
  • Shareholders for dividends
  • Bank overdraft

Net operating costs (6 625 000) Finance costs (400 000) Profit before tax 4 750 000 Taxation expense (1 275 000) Net Profit after tax 3 475 000 Additional information

  1. Land is accounted for on the revaluation model and equipment on the cost model.
  2. Land is not depreciated. Equipment is used evenly over its useful life of 8 yrs.
  3. On 1 January 2024 the business sold equipment at a profit of R60 000. The equipment had cost R400 000 on 1 January 2023.
  4. At 31 December 2024 equipment costing R250 000 (with no residual value) that had been purchased on 1 January 2023 was damaged. It has a value in use amounting to R180 000. It could be sold for R182 000 if repairs amounting to R1 800 are spent prior to disposal.
  5. There were no disposals of land during the year.
  6. The company issued shares during the year. Share issue expenses of R12 500 were paid during the 2024 year, and were written off to retained earnings.
  1. Loans amounting to R1 850 000 were repaid during the year ended 31 December 2024.
  2. The statement of changes in equity for the year ended 31 December 2024 reported dividends declared of R
  3. Net operating costs include:  Bad debts expense of R100 000  Investment income of R200 000  Rent expense of R1 400 000  Profit on disposal of equipment (see point 3 above)  Impairment loss (see point 4 above)

Required:

  1. Prepare the CFS of Retailer Ltd for the year ended 31 December 2024.