Answer ALL questions below [100 MARKS] QUESTION 1 (20 Marks) REQUIRED Use the information provided below to prepare the Cash Flow Statement of Umhlali Limited for the year ended 31 December 2020. INFORMATION The following Information was extracted from the records of Umhlali Limited for the past two years: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: 2020 (R) 2019 (R) Sales 1 856 000 1 200 000 Cost of sales (1 280 000) (750 000) Gross profit 576 000 450 000 Operating expenses (291 200) (212 000) Depreciation 30 000 26 000 Other operating expenses 261 200 186 000 Operating profit 284 800 238 000 Interest on mortgage loan (24 000) (72 000) Profit before tax 260 800 166 000 Company tax (90 240) (58 100) Profit after tax 170 560 107 900 vmc Information extracted from the Statement of Financial Position for the past two years: STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2020 (R) 2019 (R) ASSETS Non-current assets 2 464 160 2 444 000 Fixed assets 2 464 160 2 444 000 Current assets 356 000 336 000 Inventories (all Trading inventory) 120 000 250 000 Accounts receivable 40 000 64 000 Cash & cash equivalents 196 000 22 000 2 820 160 2 780 000 EQUITY AND LIABILITIES Equity 2 437 560 1 980 000 Ordinary share capital 2 180 000 1 760 000 Retained income 257 560 220 000 Non-current liabilities 200 000 600 000 Mortgage loan (12% p.a.) 200 000 600 000 Current liabilities 182 600 200 000 Accounts payable 98 000 138 000 SARS (Company tax) 8 600 6 000 Shareholders for dividends 76 000 56 000 2 820 160 2 780 000 Additional information The issue price of all the shares is R10 each. New shares were issued on the first day of the financial year. Interim and final dividends for the year ended 31 December 2020 amounted to R133 000. Fixed assets were sold at carrying (book) value during the year for R144 000. Fixed assets were also purchased.