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At the end of 2022 the plant and equipment (at carrying value) totalled R6 250 000, the long-term investment was valued at R350 000, inventories

At the end of 2022 the plant and equipment (at carrying value) totalled R6 250 000, the long-term investment was valued at R350 000, inventories amounted to R2 150 000, R1 900 000 was owed by trade debtors, cash in the bank amounted to R500 000, the ordinary share capital balance was R3 100 000, the accumulated undistributed profits amounted to R3 000 000, an amount of R3 600 000 was owed to Vap Bank in respect of the long-term loan, R1 200 000 was owed to the trade creditors, R200 000 was owed to shareholders for the final dividend and R50 000 was owed to SARS for income tax. The depreciation, operating profit, interest expense and income tax for the year ended 31 December 2022 amounted to R750 000, R1 650 000, R450 000 and R400 000 respectively. Dividends paid and recommended amounted to R300 000. repare the financial statement for the year ended 31 December 2022 that provides details about the cash inflows and cash outflows of Megazone Limited..

Workings

R

Cash flows from operating activities

Profit before working capital changes

Operating profit + Depreciation

Working capital changes

Increase/decrease in inventory

Increase/decrease in receivables

Increase/decrease in payables

Cash generated from operations

Interest paid

Interest income

Dividends paid

Income tax paid

Net cash inflow from operating activities

Cash flow from investing activities

Non-current assets purchased

Net cash flow from investing activities

Cash flow from financing activities

Proceeds from issue of ordinary shares

Long-term borrowings increase/decrease

Net increase/decrease in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

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