1. Identify and explain four (4) significant factors that contributed to the company's cash balance being reduced from the following cash flow statement for the year.

	S million	$ million
Cash flow from operating activities: Operating profit for the year Add back: Depreciation Decrease/(increase) in inventories Decrease/(increase) in receivables Increase/(decrease) in trade payables Cash generated from operations Interest paid Taxation paid Net cash from operating activities	(92) 19 (16)	291 337 (149) 188 (18) (58) 112
Cash flows from investing activities: Purchase of non-current assets Proceeds from sale of equipment Net cash outflow from investing activities	(87) 11	(76)
Cash flows from financing activities: Payment of dividends Proceeds from long-term borrowings Net cash outflowfrom financing activities	(99) 40	(59)
Net decrease in cash and cash equivalents Cash and cash equivalents at beginning period Cash and cash equivalents at endo eriod		(23) 25 2

2. Which do you think has a higher level of business risk: a company that makes high-end fashion items or a company 'that makes bread? Explain,