QUESTION $1(20$ Marks$)$

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 theamount. $(3$ marks$)$

$1\mathrm{.}3$ State THREE $(3)$ significant changes to the financial position that are evident in thisStatement 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 $2022$

Cash flows from operating activities R$3400000$Operating profit$/$Income from operations R$6000000$

Adjustments to convert to cash from operations Non$-$cash flow adjustments R$1400000$

Add: Depreciation R$1400000$

Profit before working capital changes R$7400000$Working capital changes $($R$1200000)$

Decrease in inventory R$100000$

Increase in receivables $($R$900000)$

Decrease in payables $?$

Cash generated from operations R$6200000$Interest paid $($R$400000)$

Investment income $?$

Dividends paid $($R$1600000)$

Income tax paid $($R$1140000)$

Cash flows from investing activities $($R$5200000)$Non$-$current assets purchased $($R$3800000)$Increase in investments $($R$1400000)$

Cash flows from financing activities $?$

Increase$/$Decrease in long$-$term borrowings $?$Net increase in cash and cash equivalents R$60000$

Cash and cash equivalents at beginning of year $($R$40000)$

Cash and cash equivalents at end of year R$20000$