Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . 1 Calculate the amount paid out for company tax. ( 3 marks ) 1 . 2 Did the company obtain funds from its

1.1 Calculate the amount paid out for company tax. (3 marks)
1.2 Did the company obtain funds from its financing activities? Motivate your answer with the relevant
calculations. (3 marks)
1.3 Of what significance are the details of Westham Limiteds investing activities to a potential investor? (4
marks)INFORMATION
The Statement of Cash Flows of Westham Limited for the year ended 31 December 2022 appears below:
WESTHAM LIMITED
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022
R
Cash flows from operating activities (540000)
Operating profit 2850000
Non-cash flow adjustment:
Depreciation 1058700
Profit before working capital changes 3908700
Working capital changes (2424000)
Increase in inventory (2400000)
Increase in receivables (1800000)
Increase in payables 1776000
Cash generated from operations 1484700
Dividends paid (1200000)
Company tax paid ?
Cash flows from investing activities (6900000)
Purchase of plant and equipment (6900000)
Cash flows from financing activities ?
??
Net increase (decrease) in cash ?
Cash balance (31 December 2021)9600000
Cash balance (31 December 2022)2100000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach 1-15

Authors: Jeffrey Slater

4th Edition

013142050X, 978-0131420502

More Books

Students also viewed these Accounting questions

Question

Define carcinogen.

Answered: 1 week ago

Question

Explain the triple constraint. Why is it so important?

Answered: 1 week ago

Question

Why should an employer be concerned about negligent hiring?

Answered: 1 week ago

Question

What are the various methods of interviewing? Define each.

Answered: 1 week ago