$4\mathrm{.}2\mathrm{.}2$ Comment on the cash flows from operating activities, investing activities and financing

activities.

$4\mathrm{.}2\mathrm{.}3$ A further breakdown of the statement of cash flows of Samithi Limited revealed that

there was a substantial increase in inventory, receivables and payables. How would

you interpret these increases?

INFORMATION

An extract of the Statement of Cash Flows of Samithi Limited for the year ended $31$ May $2024$ is provided

below:

R

Cash flows from operating activities $(800000)$

Cash flows from investing activities $300000$

Sale of property $300000$

Cash flows from financing activities $600000$

Increase in long$-$term borrowings $600000$