The directors of G Limited are concerned that the company’s cash balance has reduced during the latest year despite the achievement of a healthy profit result and the addition of a new long-term loan to the company’s financing structure.From the following cash flow statement for the year identify four major factors which have contributed to the reduction in the company’s cash balance. G Limited: Cash flow statement for the year ended 31 December Year 7

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Cash flow from operating activities Operating profit for the year Add back: Depreciation Decrease/(increase) in inventories Decrease/(increase) in receivables Increase/(decrease) in trade payables Cash generated from operations Interest paid Taxation paid Net cash from operating activities Cash flows from investing activities Purchase of non-current assets Proceeds from sale of equipment Net cash outflow from investing activities Cash flows from financing activities Payment of dividends Proceeds from long-term borrowings Net cash outflow from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period m m 291 46 337 (92) (76) g| (149) 188 (18) (58) 112 (87) = 11 (76) (99) 40 [ (59) (23)