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Study the Cash Flow Statement of this farming enterprise - NSC Agricultural Management Practices - Question 3 - 2021 - Paper 1

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Study the Cash Flow Statement of this farming enterprise. | ITEM | July 2019 | Budget | Actual | |--------------|------------|--------|--------| | Expenses... show full transcript

Worked Solution & Example Answer:Study the Cash Flow Statement of this farming enterprise - NSC Agricultural Management Practices - Question 3 - 2021 - Paper 1

Step 1

(a) Calculate the value of (a)

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Answer

To calculate the total expenses paid:

Total Expenses = Electricity + Transport + Repair + Purchases

Substituting the actual values:

Total Expenses = 5 632,00 + 5 461,00 + 1 547,00 + 19 000,00 = 31 640,00

Thus, (a) is R 31 640,00.

Step 2

(b) Calculate the value of (b)

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Answer

To determine the total income received:

Total Income = Cash sales + Loan payment + Rent payment

Substituting the actual values:

Total Income = 31 978,00 + 3 600,00 + 5 000,00 = 40 578,00

Thus, (b) is R 40 578,00.

Step 3

(c) Calculate the value of (c)

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Answer

Net cash flow can be calculated as follows:

Net Cash Flow = Total Received - Total Paid

Substituting the values:

Net Cash Flow = 40 578,00 - 31 640,00 = 8 938,00

Thus, (c) is R 8 938,00.

Step 4

(d) Calculate the value of (d)

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Answer

To find the closing bank balance:

Closing Bank Balance = Opening Bank Balance + Net Cash Flow

Substituting the values:

Closing Bank Balance = 52 000,00 + 8 938,00 = 60 938,00

Thus, (d) is R 60 938,00.

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