Cash at end of period 1,540 a. Mr Keillor, the managing director, has seen this statement and asks you the following questions: 1. How come our cash position looks so positive when we made a loss last year? ii. "Why is depreciation treated as a positive cash flow?" Why is an increase in payables treated as an addition to net cash from operations? (10 marks) b. Why should a business ensure that its level of trade payables is kept under control? (4 marks) c. Keillor Ltd took steps to reduce its inventory last year. Identify and explain THREE disadvantages of high inventory levels and TWO disadvantages of low inventory levels (11 marks) Upload Chow Cash at end of period 1,540 a. Mr Keillor, the managing director, has seen this statement and asks you the following questions: 1. How come our cash position looks so positive when we made a loss last year? ii. "Why is depreciation treated as a positive cash flow?" Why is an increase in payables treated as an addition to net cash from operations? (10 marks) b. Why should a business ensure that its level of trade payables is kept under control? (4 marks) c. Keillor Ltd took steps to reduce its inventory last year. Identify and explain THREE disadvantages of high inventory levels and TWO disadvantages of low inventory levels (11 marks) Upload Chow