Sigma Field Ltd. reported a profit of $95,000 for the year. The statement of profit or loss showed that depreciation expense was $12,000 and a gain on the sale of a truck of $7,500. The statement of financial position showed a decrease in accounts receivable of $15,000 for the year, an increase in inventory of $8,000 and a decrease in accounts payable of $5,000.RequiredPrepare a reconciliation of operating profit to cash flows from operating activities using the indirect method.

Depreciation of the business is recorded in which of the following financial statement

Sigma Limited income statement year ended 31-12-2020              R’000sSigma Limited balance sheet as at 31-12-2020                        R’000sSales                                            55 000Cost of sales                                30 500Operating expenses                     18 500Operating income                           6 000Interest                                           1 000Profit before tax                              5 000Company tax rate                             50%ASSETSFixed assetsNet fixed assets                   120 500Current assetsInventories                             74 500Other current assets              70 000TOTAL ASSETS                 265 000 EQUITY AND LIABILITIESOwners equity                     155 000LiabilitiesLong-term loans                     95 500Current liabilities                    14 500TOTAL EQUITY AND          265 000 LIABILITIES                                          The return on equity exceeds the return on total assets by …Select one:a.0.00%b.0.47c.0.67%d.0.06%

A company commenced business on 1 July 2022. On 30 June 2023, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information:  AssetsLiabilitiesCash$20,000Accounts Payables$50,000Inventories60,000Provision for annual Leave8,000Plant200,000  Accumulated Depreciation(20,000)   Additional information:  The plant was acquired on 1 July 2022. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes. The tax rate is 30%.The deferred tax liability and deferred tax asset are:Group of answer choicesDTL = $2,400 and DTA = $6,000DTL = $20,000 and DTA = $8,000DTL = $8,000 and DTA = $20,000DTL = $6,000 and DTA = $2,400

Read the following case study and answerquestions:FORTUNELtd. is a company engaged in textile business having a share capital of Rs.2,00,000. Rema, the accountant of the firm is analysing its financial figuresand intends to prepare its statement of profit and loss for 2021. The sales ofthe company during this period were 7,00,000 and sales return were 40,000. Itspurchases were 4,95,000, wages amounted to 1,00,000, salaries amounted to15,000, rent amounted to 9,900, sundry expenses were worth 14,100 and alsothere was a discount (Cr.) worth 10,000. 5. What is the amount that will be shown in revenue from operations in the statement of profit and loss?1 point7,00,0007,40,0006,60,00028,10,0006. What is the amount that will be shown in other income in the statement of profit and loss?1 point5,00010,00020,000None of these7. What is the amount that will be shown in employee benefit expenses in the statement of profit and loss? 1 point71,00,00015.0001,07,5001,15,0008.What is the amount that will be shown in other expenses in the statement of profit and loss?1 point24,00014,1009,900None of these

Explain what Depreciation is, and show the accounting entries thatyou would make to record depreciation on tractors of R20 000,where the opening balance for tractors is R100 000