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$)$

INFORMATION

BENNETON LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED $31$ DECEMBER $2022$

R

Cash flows from operating activities

$3400000$

Operating profit$/$Income from operations

$6000000$

Adjustments to convert to cash from operations

Non$-$cash flow adjustments

$1400000$

Add: Depreciation

$1400000$

Profit before working capital changes

$7400000$

Working capital changes

$(1200000)$

Decrease in inventory

$100000$

Increase in receivables

$(900000)$

Decrease in payables

$?$

Cash generated from operations

$6200000$

Interest paid

$(400000)$

Investment income

$?$

Dividends paid

$(1600000)$

Income tax paid

$(1140000)$

Cash flows from investing activities

$(5200000)$

Non$-$current assets purchased

$(3800000)$

Increase in investments

$(1400000)$

Cash flows from financing activities

$?$

Increase$/$Decrease in long$-$term borrowings

$?$

Net increase in cash and cash equivalents

$60000$

Cash and cash equivalents at beginning of year

$(40000)$

Cash and cash equivalents at end of year

$20000$