Answer ALL questions. [100 MARKS] QUESTION 1 (20 MARKS) 1.1 REQUIRED Study the extract of the Statement of Cash Flows of Gilette Limited for the year ended 30 April 2025 and answer the following questions: 1.1.1 Calculate the cash balance as at the beginning of the year and state whether the balance is favourable or unfavourable. (2 marks) 1.1.2 Calculate the proceeds from the issue of ordinary shares. (2 marks) 1.1.3 Comment on the cash flows from investing activities (R4 800 000). (2 marks) INFORMATION Extract of the Statement of Cash Flows for the year ended 30 April 2025 R Cash flows from operating activities 900 000 Cash flows from investing activities (4 800 000) Additions to plant and equipment (4 800 000) Cash flows from financing activities ? Proceeds from issue of ordinary shares ? Increase in long-term borrowings 600 000 Net decrease in cash and cash equivalents (300 000) Cash at beginning of year ? Cash at end of year 390 000 1.2 REQUIRED Answer the following questions from the information provided below. Express amounts in rands and cents. 1.2.1 Calculate the profit that Super Stores would make if the account is settled in 15 days' time. (5 marks) 1.2.2 Should the customer fail to pay the amount due and the account is written off after 90 days, how much would be the loss to Super Stores? (3 marks) INFORMATION Super Stores intends selling a dishwasher on credit. The selling price of the dishwasher is R7 000. The dishwasher is priced at cost plus 40%. Credit terms of 4/15 net 60 days were agreed upon. The cost of capital is 18%. 1.3 REQUIRED Use the information provided below to calculate the percentage return on sales (expressed to two decimal places). INFORMATION (6 marks) Sentinel Limited intends entering a new market and market research has revealed that the sales would increase by 10 000 units if the product is sold on credit. The cost price of the product that it intends selling to this market is R60 per unit and a profit mark-up of 60% would be applied. A provision for bad debts of 12% of the sales would be made. Collection costs on the new accounts are estimated at 4% of sales. The tax rate is 27%.