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) ofthe 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, (R1 800 000) (2 marks) 1.4.3 Increase in receivables, (R1 000 000) (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: MITRE LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021 R Cash ows from operating activities (920 000) Profit before interest and tax/Operating profit 2 200 000 Non-cash flow adjustments 380 000 Depreciation 400 000 Profit on disposal of machinery (20 000) 2 580 000 Profit before working capital changes (2 400 000) Working capital changes (1 800 000) Increase in inventory Increase in receivables (1 000 000 400 000 Increase in payables Cash generated from operations 180 000 Interest paid (100 000) Dividends paid (400 000) Company tax paid ? Cash flows from investing activities (420 000) 600 000) Non-current assets purchased 180 000 Proceeds from disposal of machinery Cash flows from financing activities Proceeds from issue of ordinary shares Increase in long-term borrowings 800 000 Net decrease in cash and cash equivalents (540 000) Cash and cash equivalents at the beginning of the year 600 000 Cash and cash equivalents at the end of the year 60 000