b) Explain the effect of the following:

e. Company D has recently concluded the purchase of a subsidiary in cash. Explain the effect of this transaction on the companys cash flow from financing activity. f. Company Z has recently sold some of its existing non-current assets, which it intends to replace. The assets have been sold for higher than net book value, resulting in a profit on sale. Explain how the proceed from the sales and profit on sales impacts on the companys cash flow in the year.