CASH FLOW STATEMENT FOR THE YEAR ENDED $31$ DECEMBER $2021$

Cash flow from financing activities

Proceeds from the issue of ordinary shares

Long term borrowing redeemed

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Required:

$4\mathrm{.}1$ Calculate the following:

$4\mathrm{.}1\mathrm{.}1$ Investment income.

$4\mathrm{.}1\mathrm{.}2$ Cash and cash equivalents at the end of the year.

$4\mathrm{.}1\mathrm{.}3$ Carrying $/$ Book value of the equipment sold.

$4\mathrm{.}2$ Analyse the following by stating your observations and making recommendations:

$4\mathrm{.}2\mathrm{.}1$ Increase in inventory

$4\mathrm{.}2\mathrm{.}2$ Decrease in receivables

$4\mathrm{.}2\mathrm{.}3$ Cash flow from investing activities