FORMATIVE ASSESSMENT $2(100$ MARKS$)$

QUESTION $1(20$ Marks$)$

REQUIRED

Study the Statement of Cash Flows given below and answer the following questions:

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

$1\mathrm{.}1\mathrm{.}1$ Decrease in payables $(2$ marks$)$

$1\mathrm{.}1\mathrm{.}2$ Interest income. $(2$ marks$)$

$1\mathrm{.}2$ Did the company increase or decrease its non$-$current liabilities? Also indicate the

amount. $(3$ marks$)$

$1\mathrm{.}3$ State THREE $(3)$ significant changes to the financial position that are evident in this

Statement of Cash Flows that the Statement of Comprehensive Income would not reveal. $(3$ marks$)$

$1\mathrm{.}4$ Comment on the following:

$1\mathrm{.}4\mathrm{.}1$ Decrease in inventory of R$100000(2$ marks$)$

$1\mathrm{.}4\mathrm{.}2$ Increase in receivables of R$900000(2$ marks$)$

$1\mathrm{.}4\mathrm{.}3$ Cash flows from operating activities of R$3400000(2$ marks$)$

$1\mathrm{.}4\mathrm{.}4$ Non$-$current assets purchased for R$3800000(2$ marks$)$

$1\mathrm{.}4\mathrm{.}5$ Increase in investments of R$1400000.(2$ marks