1.2 The extract of the Statement of Cash Flows of Ethrugal Limited for the year ended 31 May 2018 is as follows: R Cash flows from operating activities 720 000 Cash flows from investing activities (1 260 000) Additions to plant and equipment (1 260 000) Cash flows from financing activities 600 000 Proceeds from shares issued 600 000 Required: 1.2.1 Calculate the cash balance as at 31 May 2018 if the cash balance on 31 May 2017 was R20 000 (favourable). 1.2.2 Comment on the cash flows of the company. (3) (7)