Hilary Ltd

Statement of Cash Flows for the year ended 31 December 2020

	$000	$000
Cash flows from operating activities
Net profit before tax		283,800
Adjustments for:
Depreciation		81,400
Dividend income		(68,200)
Operating profit before working capital changes		297,000
Decrease in inventory	2,200
Increase in accounts receivable	(129,800)
Decrease in accounts payable	(49,500)	(177,100)
Cash generated from operations		119,900
Dividend received	1,100
Tax paid	(16,500)	(15,400)
Net cash from operating activities		104,500
Cash flows from investing activities
Payments to acquire property, plant & equipment	(56,100)
Proceeds from sale of property, plant & equipment	17,600
Net cash used in investing activities		(38,500)
Cash flows from financing activities
Proceeds from issue of bonds	192,500
Buy back and cancellation of issued shares	(99,000)
Dividend paid	(225,500)
Net cash used in financing activities		(132,000)
Net decrease in cash and cash equivalents		(66,000)
Cash and cash equivalents at 1 January 2020		126,500
Cash and cash equivalents at 31 December 2020		60,500

(a)	Comment on Hilary Ltds management of (i) operating activities, (ii) investing activities and (iii) financing activities on the basis of the above Statement of Cash Flows.
	(15 marks)
(b)	Explain the treatment of Dividend income and Dividend received in the above Statement of Cash Flows.
	(3 marks)
(c)	What may be the alternative presentation for Dividend received in the above Statement of Cash Flows? Why?