QUESTION $1(21$ marks$)$ Mellow Mangos Ltd $($Mellow Mangos$)$ is a company that packs fruit and vegetables for export. Mellow Mangos has a December financial year$-$end. You are provided with the extract of the statement of financial position as well as an extract from the statement of profit and loss and other comprehensive income of Mellow Mangos Ltd for the financial year ended $31$ December $2024.$ Extract from the Statement of financial position of Mellow Mangos Ltd as at $31$ December $2024$ Notes $20242023$ R R Property, plant and equipment $138400002650000$ Long$-$term investments $273600052000$ Inventory $1250000645000$ Trade receivables $8500095000$ Cash and cash equivalents $102000-$ Bank overdraft $-46000$ Ordinary share capital $-$ Class A $3750000250000$ Long$-$term loan $4350000175000$ Trade payables $245000268700$ Dividends payable $-10000$ South African Revenue Services $($income tax payable$)9570045850$ Extracts from the Statement of profit or loss and other comprehensive income of Mellow Mangos Ltd for the year ended $31$ December $2024$ R Profit before tax $1523000$ Income tax expense $(411210)$ Profit for the year $11117903$ HFAC$132-1-$Jul$-$Dec$2024-$SA$1-$EDK$-$V$3-20241010$ All information below has already been correctly accounted for: Note $1$: Property, plant and equipment $($PPE$)$: PPE consists of land and machinery. During the current financial year, the following transactions occurred which affected PPE: Land Land was revalued for the first time by an independent valuator. The revaluation gain was R$500000.$ Machine A Machine A$,$ valued at R$1550000,$ was purchased in cash to replace the Machine B$.$ Machine B The Machine B was sold in cash at a profit of R$140000.$ At the time of sale, Machine B had a carrying value of R$500000.$ Machine C At year$-$end, Mellow Mangos swapped Machine C with a carrying value of R$450000$ for a similar machine $($Machine D$)$ but in a different colour. Machine D had a value of R$500000.$ There were no other additions or disposals of PPE nor any impairment that occurred during the financial year. Note $2$: Long$-$term investments: During the current financial year, Mellow Mangos purchased additional investments at a cost of R$995000.$ Certain investments were sold during the current financial year, which resulted in a profit of R$53000$ on the sale. All transactions relating to investments were done on a cash basis. Mellow Mangos received dividends from the long$-$term investments held. Dividends amounting to R$32000$ were received for the year in cash. Note $3$: Ordinary share capital $$ Class A: $$ During the current year Mellow Mangos issued additional Class A ordinary shares. $$ On $31$ December $2024,$ Mellow Mangos declared dividends of R$75$ per Class A ordinary share. At the time of declaration, there were $5000$ shares in issue. $4$ HFAC$132-1-$Jul$-$Dec$2024-$SA$1-$EDK$-$V$3-20241010$ Note $4$: Long$-$term loan: $$ On $1$ February $2024,$ Mellow Mangos repaid the outstanding loan amount of R$175000$ as at $31$ December $2023$ to EastBank. $$ On $30$ June $2024,$ Mellow Mangos needed funding for a new variety of watermelon they wanted to develop. Funding was obtained via a long$-$term loan from EastBank amounting to R$350000.$ The loan bears interest at a rate of $11\%$ per annum. REQUIRED: Prepare an extract from the Statement of Cash Flows of Mellow Mangos Ltd showing cash flows from investing activities and financing activities for the financial year ended $31$ December $2024,$ using the indirect method. $$ Ignore value added tax $($VAT$)$ and dividends tax for this question. $$ Show all calculations, and reference accordingly. $$ Round to the nearest Rand where applicable. $(21$ marks