Paragraph Study the statement of cash flows given below and answer the following questions: 1.1Calculate the following 1.1.1Dividends paid 1.1.2Carrying value (Book value) of the equipment sold 1.1.3Cash and cash equivalents at the end of year Styles 1.21dentify TWO (2) items from this statement of cash flows that improve cash flow but do not increase profit. 1.3Explain why depreciation is added to operating profit in computing the cash flow from operating activities. 1.4There is a combination of a positive cash flow from operating activities of R1 504 000 and a negative cash flow from investing activities of R8 384 000. Is this favourable for Sinclair Ltd? Provide THREE (3) reasons for your answer. 1.5Comment on the following 1.5.1Decrease in inventory, R264 000 1.5.2increase in receivables, (R3 712 000) INFORMATION SINCLAIR LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021 Cash flows from operating activities Profit before interest and tax/Operating profit Adjustments to convert to cash from operations Non-cash flow adjustments Depreciation Loss on disposal of equipment Profit before working capital changes Working capital changes Decrease in inventory Increase in receivables Decrease in payables Cash generated from operations Interest paid Dividends paid Income tax paid Cash flows from investing activities Non-current assets purchased Proceeds from sale of equipment Cash flows from financing activities Proceeds from issue of ordinary shares Increase in long-term borrowings Net increase in cash and cash equivalents Cashand cash equivalents at beginning of year Castrand cash equivalents at the end of year R1504 000 R 10 136 000 R6176 000 R6 000 000 R176 000 R16 312 000 14 112 000) R264 000 (3 712 000) (664 000) R12 200 000 3 744 000) 12 880 000) (8 384 000) 10 576 000) 2 192 000 8 640 000 2 880 000 5 760 000 1440 000 ?