Question: Lister Limited

The following information was obtained from the books of Lister Limited.

Statement of financial position items at 31 December 2020

31/12/202 31/12/2019
0
EQUITY AND LIABILITIES
Ordinary share capital (R1 shares) 600 000 400 000
10% Redeemable preference shares (R1 shares) - 75 000
Retained income 1 200 000 1 050 000
6% Debentures - 60 000
Revaluation reserve fund 25 000 -
Account payables 280 000 155 000
SARS (income tax) 60 000 30 000
Shareholders for dividends 60 000 40 000
ASSETS
Land and buildings 1 050 000 750 000
Machinery at cost 575 000 505 000
Accumulated depreciation on machinery 385 000 375 000
Vehicles at cost 276 000 276 000
Accumulated depreciation on vehicles 80 000 50 000
Unlisted investments - 20 000
Bank 29 000 50 000

Additional information in respect of the financial year ended 31 December 2020:

1. Income tax expense according to the Statement of profit or loss and other
comprehensive income, R130 000.
2. The following dividends were declared during the financial year:
 Preference dividends, R3 750
 Ordinary dividends, R83 625
3. Interest to the amount of R3 000 was paid to debenture holders.
4. During the year a machine, originally costing R150 000 and already depreciated
with R130 000, was traded in at a loss of R10 000 for a new machine costing
R200 000. The rest of machinery purchases expanded operations.
5. No other fixed asset was sold during the year.
6. Cash received from clients, R1 000 000.
7. Cash paid to suppliers and employees, R450 625.

You are required to:

1. Prepare the cash flow statement of Lister Limited for the year ended
31 December 2020.