Professional Documents
Culture Documents
2021
R
Cash flows from operating activities
Profit before taxation (given) 118 206 000 (½)
Adjustments for:
Depreciation (given) 31 053 000 (½)
Consolidated gain on disposal of subsidiary [C5] (3 167 500) (2½)
Excess at acquisition [C4] (329 359) (4½)
Profit on disposal of property, plant and equipment (given) (3 787 000) (½)
Share of profit of associate (given) (2 099 800) (½)
Dividends received – equity instruments (2 943 000 - 45 000) (2 898 000) (1)
Interest received [C2] (23 000) (2)
Finance costs (given) 2 500 000 (½)
139 454 341
Increase in inventory (604 000 [C3] + 23 332 000 [C3]) (23 936 000) (1)
Decrease in trade and other payables [C3] (6 870 000) (½)
Increase in trade and other receivables [C1] (29 288 000) (1)
Cash generated from operations 79 360 341
Dividends received (2 943 000 - 45 000 + 583 000 [C6]) 3 481 000 (3)
Interest received [C2] 23 000 (2)
Interest paid (given) (2 500 000) (½)
Dividends paid [C7] (7 570 050) (2)
Income taxes paid [C8] (54 120 855) (3½)
Net cash from operating activities 18 673 436
Cash flows from investing activities
Acquisition of property, plant and equipment [C9] (80 200 375) (2½)
Acquisition of investments in equity instruments [C10] (2 878 361) (2½)
Acquisition of investment in associate (given) (2 368 000) (½)
Proceeds from disposal of PPE (15 767 000 + 3 787 000) 19 554 000 (1)
Proceeds from disposal of investments in equity instruments (given) 15 125 000 (½)
Proceeds from disposal of subsidiary (36 667 000 – 6 567 000) 30 100 000 (1)
Net cash used in investing activities (20 667 736)
Cash flows from financing activities
Proceeds from issue of shares [5 000 000 – (119 000 x 18)] 1 668 000 (1)
Proceeds from partial disposal of subsidiary [C11] 31 083 300 (4)
Loan repaid (28 033 000 – 0) (28 033 000) (1)
Net cash from financing activities 4 718 300
Net increase in cash and cash equivalents 2 724 000
Cash and cash equivalents at beginning of period 5 987 000 (½)
Cash and cash equivalents at end of period 8 711 000 (½)
Total (41)
Maximum (38)
Communication skills: presentation and layout (2)
2
The adjustment for Dividends received of R2 898 000 and interest received of R23 000 in the
adjustments to Profit before taxation can also be disclosed as:
Adjustments for:
Other income (given) (2 943 000) (½)
Non-cash interest received on staff loan [C1] 22 000 (1)
CALCULATIONS
Increase in trade and other receivables (23 614 000 – 19 093 000) (4 521 000) [½]
Disposal of subsidiary – Jatu (given) (24 767 000) [½]
(29 288 000)
[1]
Decrease in shareholders for dividends (8 000 000 – 5 000 000) (3 000 000) [½]
Dividends declared by Zapatech (given) (3 720 000) [½]
Dividends declared to NCI - Nixel (5 667 000 x 15%) (850 050) [1]
(7 570 050)
[2]
Increase in deferred tax balance (28 167 000 – 29 955 000) 1 788 000 [½]
Fair value adjustment on equity instrument
((2 933 000/77,6%) x 28% x 80%) (846 639) [1]
Revaluation of freehold land ((25 148 000/77,6%) x 28% x 80%) (7 259 216) [1]
Movement of deferred tax included in profit or loss (6 317 855)
Decrease in tax payable balance (29 228 000 – 14 360 000) (14 868 000) [½]
Current tax included in profit or loss (given) (32 935 000) [½]
(54 120 855)
[3½]
Increase in PPE balance (215 069 791 – 149 282 200) (65 787 591) [½]
Revaluation of freehold land (25 148 000/0,776) 32 407 216 [1]
Disposal of PPE (given) (15 767 000) [½]
Depreciation (given) (31 053 000) [½]
(80 200 375)
[2½]
4
Increase in equity instruments balance (24 400 000 – 23 867 000) (533 000) [½]
Fair value adjustment [2 933 000/0,776) 3 779 639 [1]
Fair value of remaining interest (given) 9 000 000 [½]
Disposal of equity instruments (given) (15 125 000) [½]
(2 878 361)
[2½]
OR
Net asset value sold (77 916 500 x 25%) 19 479 125 [½]
Profit on sale (given) 11 604 175 [½]
Fair value of consideration received (balancing) 31 083 300
[4]
The following information is provided for revision purposes to compare the differences between the
direct and indirect methods.
ZAPATECH GROUP
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021
2021
R
Cash flows from operating activities
Cash receipts from customers [C1] 247 721 000
Cash paid to suppliers and employees [C3] (168 360 659)
Cash generated from operations 79 360 341
Interest received [C2] 23 000
Interest paid (given) (2 500 000)
Dividends received (2 943 000 – 45 000 + 583 000 [C6]) 3 481 000
Dividends paid [C7] (7 570 050)
Income taxes paid [C8] (54 120 855)
Net cash from operating activities 18 673 436
CALCULATIONS
ZAPATECH GROUP
EXTRACT OF THE NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE
YEAR ENDED 30 JUNE 2021
During the year, Zapatech Ltd disposed of a subsidiary, Jatu Ltd (‘Jatu’). The fair values of
the assets on disposal date were as follows:
2021
R
Inventory 23 332 000
Trade and other receivables 24 767 000
Cash and cash equivalents 6 567 000
Net assets (given) 54 666 000
Non-controlling interests (54 666 000 x 25%) (13 666 500)
Goodwill (given) 1 500 000
Fair value of retained investment (given) (9 000 000)
Consolidated gain on disposal (part (a)) 3 167 500
Total consideration received in cash 36 667 000
Less cash and cash equivalents of subsidiary (given) (6 567 000)
Net cash inflow 30 100 000