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 $ofR100000$

$(2$ marks$)$

$1\mathrm{.}4\mathrm{.}2$

Increase $in$ receivables $ofR900000$

$(2$ marks$)$

$1\mathrm{.}4\mathrm{.}3$

Cash flows from operating activities $ofR3400000$

$(2$ marks$)$

$1\mathrm{.}4\mathrm{.}4$

Non$-$current assets purchased for $R3800000$

$(2$ marks$)$

$1\mathrm{.}4\mathrm{.}5$

Increase $in$ investments $ofR1400000.$

$(2$ marks$)$

INFORMATION

BENNETON LIMITED

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

$R$

Cash flows from operating activities

$3400000$

Operating profi$\frac{t}{\text{I}}$ncome 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

$?$

Increas$\frac{e}{D}$ecrease $in$ 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

$20000$