Question: Please Assist ASAP to Answer all questions in this section . QUESTION 1 (20 Marks) REQUIRED Study the statement of cash flows given below and
| Please Assist ASAP to Answer all questions in this section. | |
| QUESTION 1 | (20 Marks) |
| REQUIRED | ||
| Study the statement of cash flows given below and answer the following questions: | ||
| 1.1 | Calculate the following: | |
| 1.1.1 | Dividends paid | (2 marks) |
| 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 not increase profit. | (2 marks) |
| 1.3 | Explain why depreciation is added to operating profit in computing the cash flow from operating activities. | (2 marks) |
| 1.4 | There 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. | (6 marks) |
| 1.5 | Comment on the following: | |
| 1.5.1 | Decrease in inventory, R264 000 | (2 marks) |
| 1.5.2 | Increase in receivables, (R3 712 000) | (2 marks) |


INFORMATION \begin{tabular}{|l|r|} \hline Decrease in payables & (664000) \\ \hline Cash generated from operations & 12200000 \\ \hline Interest paid & (3744000) \\ \hline Dividends paid & ? \\ \hline Income tax paid & (2880000) \\ \hline Cash flows from investing activities & (8384000) \\ \hline Non-current assets purchased & (10576000) \\ \hline Proceeds from sale of equipment & 2192000 \\ \hline Cash flows from financing activities & 8640000 \\ \hline Proceeds from issue of ordinary shares & 2880000 \\ \hline Increase in long-term borrowings & 5760000 \\ \hline Net increase in cash and cash equivalents & ? \\ \hline Cash and cash equivalents at beginning of year & 1440000 \\ \hline Cash and cash equivalents at the end of year & ? \\ \hline & \\ \hline \end{tabular}
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