Kindly share solutions for: 1.2 Apart from depreciation, name two other adjustments that would be needed to convert to cash from operations (R140 000). (2) 1.3 Comment on the following: 1.3.1 Cash flows from operating activities (4) 1.3.2 Increase in receivables (4) 1.3.3 Cash flow from investing activities (4)

INFORMATION

Mika Limited

STATEMENT OF CASH FLOWS FOR

THE YEAR ENDED 30 NOVEMBER 2016

R

Cash flows from operating activities

630 000

Profit before interest and tax/Operating profit

Adjustments to convert to cash from operations

750 000

210 000

Profit before working capital changes

Working capital

changes

960 000

162 000

Decrease in inventory

Increase in receivables

Increase in payables

240 000

(330

000)

252 000

Cash generated from operations

1

122 000

Interest income

60 000

Dividends paid

?

Income tax paid

(324

000)

Cash flow

from investing activities

(1

140

000)

Non

-

current assets purchased

Proceeds from sale of vehicles (sold at a profit of R150 000)

Increase in long

-

term investments

Disposal of long

-

term investments (disposed at a loss of R75 000)

(1

230 00)

450 000

(510

000)

150 000

Cash flow from financing activities

600 000

Proceeds from issue of ordinary shares

600 000

Net increase in cash and cash equivalents

?

Cash and cash equivalents at beginning of year

660 000

Cash and cash equivalents at end

of year

?