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QUESTION 1 1.1 (2 mar 1.2 (2 mar (2 mar 1.4 Study the statement of cash flows of Mustang Limited given below and answer the

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QUESTION 1 1.1 (2 mar 1.2 (2 mar (2 mar 1.4 Study the statement of cash flows of Mustang Limited given below and answer the following questions Calculate the cash balance as at the beginning of the year and state whether the balance is lavourable or unfavourable. Calculate the amount of interest paid for the year ended 31 December 2020. Identify one item from the statement of cash flows below that increases cash flow but not profit Explain why depreciation is added to the operating profit Comment on the following cash flows of Mustang Limited Cash flows from operating activities R292 000 Increase in receivables (R78 000) 1.5.3 Cash flows from investing activities (R448 000) Cash flows from financing activities (R160 000) (2 mart 1.5 1.5.1 (3 marl 1.5.2 (3 mar (3 marl 1.5.4 (3 mart INFORMATION MUSTANG LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 R Cash flows from operating activities 292 000 Profit before interest and tax/Operating profit 512 000 Depreciation 128 000 Profit before working capital changes Working capital changes 540 000 (100 000) BOOO Decrease in inventory Increase in receivables (76 000) Doorooso in poyatos (32 000 Cash generated from operations 540 000 interesi paid Dividends peld (120 000) Income tax paid (90000) cash flows from investing activities (448 000) (328 000) (120 000) Non-current assets purchased Increase in invo-smonto Cach flows from financing activities 160 000 Increase in long term borrowingo 160 000 Net Increase in cash and cash equivalent 4 000 cash and can equivalent of Denning of the year Cash and cash equivalents at end of the year 36000

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