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QUESTION 1 ( 2 0 Marks ) REQUIRED Study the information given below and answer the following questions: 1 . 1 Calculate the net cash

QUESTION 1(20 Marks)
REQUIRED
Study the information given below and answer the following questions:
1.1 Calculate the net cash flow from financing activities. Also state whether it is a net cash
inflow or net cash outflow. (2 marks)
1.2 Calculate the amount that would appear as Working capital changes in the Statement
of Cash Flows of Fiona Limited. (4 marks)
1.3 Calculate the percentage increase in operating expenses over the two-year period and
comment on your answer. (2 marks)
1.4 Comment on the following items over the two-year period. (No ratios are required.)
1.4.1 Non-current assets (4 marks)
1.4.2 Inventories (4 marks)
1.4.3 Accounts receivable (4 marks)
INFORMATION
The following information was obtained from the financial records of Fiona Limited:
Fiona Limited
Statement of Comprehensive Income for the year ended 31 December:
2023(R)2022(R)
Sales 1900000018000000
Cost of sales (10000000)(9800000)
Gross profit 90000008200000
Operating expenses (5500000)(5200000)
Operating profit 35000003000000
Interest expense (240000)(360000)
Profit before tax 32600002640000
Company tax (880200)(739200)
Profit after tax 23798001900800
Fiona Limited
Statement of Financial Position as at 31 December:
2023(R)2022(R)
ASSETS
Non-current assets 25000003000000
Property, plant and equipment 25000003000000
Current assets 1950000013600000
Inventories 120000008000000
Accounts receivable 65000003600000
Cash 10000002000000
Total assets 2200000016600000
EQUITY AND LIABILITIES
Equity 1600000010600000
Ordinary share capital 120000008000000
Retained earnings 40000002600000
Non-current liabilities 20000003000000
Long-term loan (12%)20000003000000
Current liabilities 40000003000000
Accounts payable 34440002616000
Dividends payable 556000384000
Total equity and liabilities 2200000016600000
Additional information
1. All purchases and sales of inventories are on credit.
2. Depreciation for the year ended 31 December 2023 amounted to R500000.
3. Interim dividends paid out during the financial year ended 31 December 2023 amounted to R423800.
4. Credit terms to debtors are 30 days and credit terms from suppliers are 60 days.

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