QUESTION $1(20$ Marks$)$ REQUIRED Study the statement of cash flows given below and answer the following questions: $1\mathrm{.}1$ Calculate the following: $1\mathrm{.}1\mathrm{.}1$ Dividends paid $(2$ marks$)1\mathrm{.}1\mathrm{.}2$ Carrying value $($Book value$)$ of the equipment sold $(2$ marks$)1\mathrm{.}1\mathrm{.}3$ Cash and cash equivalents at the end of year $(2$ marks$)1\mathrm{.}2$ Identify TWO $(2)$ items from this statement of cash flows that improve cash flow but do not increase profit. $(2$ marks$)1\mathrm{.}3$ Explain why depreciation is added to operating profit in computing the cash flow from operating activities. $(2$ marks$)1\mathrm{.}4$ There is a combination of a positive cash flow from operating activities of R$1504000$ and a negative cash flow from investing activities of R$8384000.$ Is this favourable for Sinclair Ltd$?$ Provide THREE $(3)$ reasons for your answer. $(6$ marks$)1\mathrm{.}5$ Comment on the following: $1\mathrm{.}5\mathrm{.}1$ Decrease in inventory, R$264000(2$ marks$)1\mathrm{.}5\mathrm{.}2$ Increase in receivables, $($R$3712000)(2$ marks$)$ INFORMATIONQUESTION $1$

$(20$ Marks$)$

REQUIRED

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

$1\mathrm{.}1$ Calculate the amount paid out for company tax.

$(3$ marks$)$

$1\mathrm{.}2$ Did the company obtain funds from its financing activities? Motivate your answer with the relevant calculations. $(3$ marks$)$

$1\mathrm{.}3$ Of what significance are the details of Westham Limited's investing activities to a potential investor? marks$)$

$1\mathrm{.}4$ Write a report to the board of directors to provide an interpretation of the Statement of Cash Flows of Westham Limited for the year ended $31$ December $2022.$ Your report must focus on the cash flows from operating activities, increase in inventory, increase in receivables, increase in payables and purchase of plant and equipment. $(10$ marks$)$

INFORMATION

The Statement of Cash Flows of Westham Limited for the year ended $31$ December $2022$ appears below.

WESTHAM LIMITED

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

$\backslash$table$[[,$R$],[$Cash flows from operating activities, $000)],[$Operating profit,$2850000],[$Non$-$cash flow adjustment:,$],[$Depreciation$,1058700],[$Profit before working capital changes,$3908700]]$

$\backslash$table$[[$Working capital changes,$(2424000)$