Question: Answer all questions in this section. QUESTION 1 [100 MARKS] REQUIRED (20 Marks) Study the statement of cash flows given below and answer the following

Answer all questions in this section. QUESTION 1 [100 MARKS] REQUIRED

Answer all questions in this section. QUESTION 1 [100 MARKS] REQUIRED (20 Marks) Study the statement of cash flows given below and answer the following questions: 1.1 Calculate the following: 1.1.1 Dividends paid 1.1.2 Carrying value (Book value) of the equipment sold (2 marks) 1.1.3 Cash and cash equivalents at the end of year (2 marks) 1.2 Identify TWO (2) items from this statement of cash flows that improve cash flow but do (2 marks) not increase profit. 1.3 Explain why depreciation is added to operating profit in computing the cash flow from (2 marks) operating activities. 1.4 There is a combination of a positive cash flow from operating activities of R1 504000 (2 marks) and a negative cash flow from investing activities of R8 384000 . Is this favourable for Sinclair Ltd? Provide THREE (3) reasons for your answer. 1.5 Comment on the following: 1.5.1 Decrease in inventory, R264000 1.5.2 Increase in receivables, (R3712 000) (2 marks (2 marks INFORMATION SINCLAIR LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021 Answer all questions in this section. QUESTION 1 [100 MARKS] REQUIRED (20 Marks) Study the statement of cash flows given below and answer the following questions: 1.1 Calculate the following: 1.1.1 Dividends paid 1.1.2 Carrying value (Book value) of the equipment sold (2 marks) 1.1.3 Cash and cash equivalents at the end of year (2 marks) 1.2 Identify TWO (2) items from this statement of cash flows that improve cash flow but do (2 marks) not increase profit. 1.3 Explain why depreciation is added to operating profit in computing the cash flow from (2 marks) operating activities. 1.4 There is a combination of a positive cash flow from operating activities of R1 504000 (2 marks) and a negative cash flow from investing activities of R8 384000 . Is this favourable for Sinclair Ltd? Provide THREE (3) reasons for your answer. 1.5 Comment on the following: 1.5.1 Decrease in inventory, R264000 1.5.2 Increase in receivables, (R3712 000) (2 marks (2 marks INFORMATION SINCLAIR LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021

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