Below is the Statement of Cash Flows for Sintern Ltd for the financial year ending 30 June 2022 (prepared using the Direct method):

		$ 000s
Cash flows from operating activities
Receipts from customers		676 000
Payments to suppliers and employees		(605 000)
Cash generated from operations		71 000
Interest paid		(4 000)
Income tax paid		(21 000)
Net cash from operating activities		46 000
Cash flows from investing activities
Cash paid for plant		(25 000)
Net cash used in investing activities		(25 000)
Cash flows from financing activities
Proceeds from borrowings		40 000
Dividend paid		(23 000)
Net cash from financing activities		17 000
Net increase in cash and cash equivalents
		38 000
Cash and cash equivalents at beginning of year		30 000
Cash and cash equivalents at end of year		68 000

REQUIRED:

1. In your own words, and using the information provided in the above Statement of Cash Flows, outline what you have learnt about Sinterns activities throughout the year and how they led to Sinterns current cash position.
2. Explain what is meant by the term Cash or Cash Equivalents as required in a Statement of Cash Flows.