Asparagus (Pty) Ltd had the following opening balances (01.03.2016) in their trial balance for the year ending 28 February 2017:

Class A share capital (300 000 shares) R600 000 1

2% Class B share capital (20 000 shares) R100 000

Retained Earnings R678 000

Total R1 378 000

Authorised share capital of Asparagus consisted of:

500 000 Class A shares (with voting rights)

200 000 Class B shares (without voting rights, non-cumulative, non-redeemable) entitled to fixed dividends of 12% of R5 per share.

During the year the following was approved by the directors:

a) A capitalisation issue of 100 000 Class A shares (with voting rights) at R2.50 each was to take place on 1 May 2016. The capitalisation issue occurred on 1 May 2016.

b) The directors announced a rights offer to existing Class A shareholders on 1 September 2016, whereby existing shareholders could purchase 1 Class A share for every 4 Class A shares (with voting rights) held at R3 each. 85% of shareholders had exercised their rights by 1 October 2016, the closing date for applications. Share issue costs of R18 000 were incurred, which included the underwriters commission of 4%.

c) Profit for the year amounted to R350 000 and a Class A dividend of 10c per share was declared and paid on 28 February 2017.

Required: Show how the above transactions will be reflected in the:

Statement of cash flows of Asparagus (Pty) Ltd for the year ended 28 February 2017. (3 marks)