QUESTION 3 (20 marks)

The following is an extract from the financial statements of LaLaLand Ltd:

Extracts from Statement of financial position 2017 and 2018

2017 (2018)

Net non-current assetsR 2 900R3 400

Current assetsR650R705

Long-term debtR 1 500R1 720

Current liabilitiesR 265R 290

2017 Income statement

Sales R8 600

Costs R4 150

Depreciation R800

Interest paid R216

3.1 What is owner's equity for 2017 and 2018? (4)

3.2 What is the addition to net working capital for 2018? (4)

3.3 In 2018, LaLaLand Ltd purchased R1 500 in new non-current assets. How much in non-current assets did LaLaLand Ltd sell? What is the cash flow from assets for the year? The tax rate is 28% percent. (8)

3.4 During 2018, LaLaLand Ltd raised R300 in new long-term debt. How much long-term debt must LaLaLand Ltd have paid off during the year? What is the cash flow to lenders? (4)