Question 1 (55 marks)

Please find the link to Annual Financial Statements of Massmart Holdings (Pty) Ltd (The Group) below: Massmart is a South African-based globally competitive regional management group, invested in a portfolio of differentiated, complementary, focused wholesale and retail formats. These are each reliant on high volumes and operational excellence as the foundation of price leadership, in the distribution of mainly branded consumer goods for cash. Massmart is the second-largest distributor of consumer goods in Africa, the leading retailer of general merchandise, liquor and home improvement equipment and supplies, and the leading wholesaler of basic foods. The wholesale and retail chains are all focused on high-volume and low-cost distribution. It operates 420 stores in 13 countries in sub-Saharan Africa through the Group's two business units - Massmart Wholesale and Massmart Retail. They are listed on the main board of the JSE Securities Exchange in the Consumer Services-Retail sector.

https://www.massmart.co.za/iar2020/download-pdf/Massmart

Comment on the statement of Cash Flow of the Group. Divide your answer under the following headings: 1. Cash Flow statement 1.1 Cash Flow from operations (5) 1.2 Cash Flow from investing activities (2.5) 1.3 Cash Flow from financing activities (2.5) 1.4 Issue an overall conclusion on the Cash Flow of Massmart (5)

2. Income Statement 2.1. Compile a vertical and horizontal analysis and comment on your findings (7,5) 2.2. Comment on the profitability of the company. Support your answer with Ratio analysis (7,5)

3. Statement of financial position 3.1 Comment on the financial position of the company. Support your answer with Ratio Analysis (15) 4. Conclusion Draft a conclusion based on the results in points 1-3 include the possible strategic risk issues the company might face. (10)