CASH FLOW STATEMENT OF BLUE CRANE (PTY) LTD FOR THE PERIOD ENDING 28 FEBRUARY 2020 Cash from operations: (R) (R) Net loss for the year 1,247,200 Add back non-cash flow items: Depreciation 250,000 Cash inflowl(outflow) 1,497,200 Movement in working capital: Inventory (529,667) Trade debtors (2,100,150) Trade creditors 850,950 (1.778,867) Cash generated/ (utilized) in operations (281,667) THIS IS A NON-VENUE BASED INDIVIDUAL EXAMINATION THIS EXAMINATION PAPER CONSISTS OF 7 PAGES Cash inflow from financing activities: Increase in long term loan from FNB. Finance Charges Dividends paid 500,000 (150,000) (300,000) Net cash inflowl (outflow) for the period Cash at the beginning of the period Cash at the end of the period 1,768,333 (375,800) 1,392,533 Required: 4.2.1 How would you interpret each component of "Movement in working capital" as per the abovementioned Statement of Cashflow of Blue Crane Ltd? (Explain each component in working capital separately) (10) 4.2.2 The above mentioned cash flow statement is presented at the board meeting of Blue Crane (Pty) Ltd. Answer the following questions from the board members: (10) a. How did the company fund the outflow of cash? b. Do you think it is sustainable? Discuss. TURN OVER]