please amswer the following questions in depth.

SECTION A [100 MARKS Answer ANY FIVE (5) questions in this section QUESTION 1 (2 marks) 1.2 12 marks) (2 marks) Study the statement of cash flows of Mustang Limited given below and answer the following questions: 1.1 Calculate the cash balance as at the beginning of the year and state whether the balance is favourable or unfavourable Calculate the amount of interest paid for the year ended 31 December 2020 1.3 Identity one item from the statement of cash flows below that increases cash flow but not profit. 1.4 Explain why depreciation is added to the operating profit. Comment on the following cash flows of Mustang Limited Cash flows from operating activities R292 000 Increase in receivables (R76 000) Cash flows from investing activities (R448 000) Cash flows from financing activities (R160 000) (2 marks) 1.5 1.5.1 (3 marks) 1.5.2 (3 marks) 1.5.3 3 marks) 1.5.4 (3 marks) INFORMATION MUSTANG LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 R 292 000 Cash flows from operating activities 512 000 Profit before interest and tax/Operating profit 128 000 Depreciation 840 000 Profit before working capital changes Working capital changes (100 000) 8000 (76000) Decrease in inventory Increase in receivables (32 000) Decrease in payables 540 000 Cash generated from operations ? Interest paid (120 000) Dividends paid (96 000) Income tax paid Cash flows from investing activities (448 000) (328 000) Non-current assets purchased Increase in investments (120 000) 160 000 Cash flows from financing activities Increase in long-term borrowings 160 000 Net increase in cash and cash equivalents 4000 ? Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 36 000