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1 . 1 Calculate the amount paid out for company tax. ( 3 marks ) 1 . 2 Did the company obtain funds from its
Calculate the amount paid out for company tax. marks
Did the company obtain funds from its financing activities? Motivate your answer with the relevant
calculations. marks
Of what significance are the details of Westham Limiteds investing activities to a potential investor?
marksINFORMATION
The Statement of Cash Flows of Westham Limited for the year ended December appears below:
WESTHAM LIMITED
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER
R
Cash flows from operating activities
Operating profit
Noncash flow adjustment:
Depreciation
Profit before working capital changes
Working capital changes
Increase in inventory
Increase in receivables
Increase in payables
Cash generated from operations
Dividends paid
Company tax paid
Cash flows from investing activities
Purchase of plant and equipment
Cash flows from financing activities
Net increase decrease in cash
Cash balance December
Cash balance December
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