SECTION A [100 MARKS Answer ALL the questions in this section. Study the Statement of Cash Flows provided below and answer the following questions: 1.1 Calculate the following: 1.1.1 Company tax paid (3 marks) 1.1.2 Carrying value (Book value) of the machinery sold. (2 marks) 1.2 Identify TWO (2) items from this statement of cash flows that increase the cash balance but do not (2 marks) increase the profit. 1.3 Did the company issue any ordinary shares during the financial year ended 30 June 2021? (3 marks) Motivate your answer. 1.4 Comment on the following. 1.4.1 Cash flow from operating activities, (R920 000) (2 marks) 1.4.2 Increase in inventory, (R1800000) (2 marks) 1.4.3 Increase in receivables, (R1000000) (2 marks) 1.4.4 Non-current assets purchased, (R600 000) (2 marks) 1.4.5 Increase in long-term borrowings, R800 000 (2 marks) INFORMATION The Statement of Cash Flows provided below was obtained from the records of Mitre Ltd: Cash flows from investing activities (420000) \begin{tabular}{|l|r|} \hline Non-current assets purchased & (600000) \\ \hline Proceeds from disposal of machinery & 180000 \\ \hline & \\ \hline \end{tabular} Cash flows from financing activities ? Proceeds from issue of ordinary shares ? Increase in long-term borrowings Net decrease in cash and cash equivalents (540000) Cash and cash equivalents at the beginning of the year 600000 Cash and cash equivalents at the end of the year 60000