(a) Examine the Cash Flow from Assets (CFFA) for the Year 2021? (10 marks) (b) Examine the Cash Flow to Creditors (CFTC) for the Year 2021? (5 marks) (c) Examine the Cash Flow to Shareholders (CFTS) for the Year 2021? (5 marks) (d) Appraise three (3) key points that you could draw from these three sets of cash flows? (15 marks) (e) Discuss how the firm was financed in Year 2021 by commenting on the level of gearing in Year 2021. (10 marks) (f) Henceforth, infer the likely level of the Return of Equity in the previous Year 2020. Justify your response. (5 marks)

Question 2 Below are the recent Balance Sheet and Income Statement of UGS Trading: Balance Sheet as at 31.12.yyyy Yr 2021 Yr 2020 (figures in thousands) Assets Cash Current Assets Fixed Assets Accumulated Depreciation Investment in affiliate Total Assets 1622 6438 (1740) 2030 8350 1350 4500 (1500) 1950 6300 Liabilities Account Payable Other Accruals Current Liabilities 590 260 850 360 240 600 510 130 60 1550 130 130 40 900 Bank Loan Bond due in year 2030 Provision for Income Tax Total Liabilities Equities Share Capital Retained Earnings Total Equity 4500 2300 6800 3300 2100 5400 Total Liabilities & Equities 8350 6300 Income Statement for the Year 2021 (figures in thousands) Sales Cost of Goods Sold Gross Profit General & Selling Expenses Depreciation Gain on Sale of Fixed Asset Earnings before Interest & Tax Interest Earnings before Tax Tax Net Income 19950 (10698) 9252 (7100) (240) 8 1920 (50) 1870 1920) 950 Question 2 Below are the recent Balance Sheet and Income Statement of UGS Trading: Balance Sheet as at 31.12.yyyy Yr 2021 Yr 2020 (figures in thousands) Assets Cash Current Assets Fixed Assets Accumulated Depreciation Investment in affiliate Total Assets 1622 6438 (1740) 2030 8350 1350 4500 (1500) 1950 6300 Liabilities Account Payable Other Accruals Current Liabilities 590 260 850 360 240 600 510 130 60 1550 130 130 40 900 Bank Loan Bond due in year 2030 Provision for Income Tax Total Liabilities Equities Share Capital Retained Earnings Total Equity 4500 2300 6800 3300 2100 5400 Total Liabilities & Equities 8350 6300 Income Statement for the Year 2021 (figures in thousands) Sales Cost of Goods Sold Gross Profit General & Selling Expenses Depreciation Gain on Sale of Fixed Asset Earnings before Interest & Tax Interest Earnings before Tax Tax Net Income 19950 (10698) 9252 (7100) (240) 8 1920 (50) 1870 1920) 950