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Motivated is a retailer selling inspirational books. The following information was provided by the bookkeeper for the year ended 28 February 2022:
Additional information
1. Dividends were not declared during the year ended 28 February 2022.
2. Equipment with a book value of R20 000 was sold during the year.
3. The company raised loans of R14 000 during the year ended 28 February 2022.
4. The operating costs included in the statement of comprehensive income for the year ended 28 February 2022 included the following items:
Bad debts expense 2 000
Wages expense 24 000
Rent expense 10 000
Depreciation expense 4 000
Profit on disposal of equipment 3 000
5. 20 000 Class A shares were issued for 50c each during the year and share issue costs of R2 000 were paid in this transaction.
Required:
Prepare the cash flow statement of Motivated for the year ended 28 February 2022, using the indirect method
Answer & Explanation
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