Question 3 $ooo 283,800 Hilary Ltd Statement of Cash Flows for the year ended 31 December 2020 $'000 Cash flows from operating activities Net profit before tax Adjustments for: Depreciation Dividend income Operating profit before working capital changes Decrease in inventory 2,200 Increase in accounts receivable (129,800) Decrease in accounts payable (49.500) Cash generated from operations Dividend received 1,100 Tax paid (16.500) Net cash from operating activities 81,400 (68,200) 297,000 (177.100) 119,900 (15.400) 104,500 Cash flows from investing activities Payments to acquire property, plant & equipment Proceeds from sale of property, plant & equipment Net cash used in investing activities (56,100) 17,600 (38,500) 192,500 (99,000) (225.500) Cash flows from financing activities Proceeds from issue of bonds Buy back and cancellation of issued shares Dividend paid Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January 2020 Cash and cash equivalents at 31 December 2020 (132,000) (66,000) 126.500 60.500 (a) Comment on Hilary Ltd's management of (i) operating activities, (i) investing activities and (i) financing activities on the basis of the above Statement of Cash Flows. (15 marks) (b) Explain the treatment of Dividend income and Dividend received" in the above Statement of Cash Flows. (3 marks) (c) What may be the alternative presentation for "Dividend received in the above Statement of Cash Flows? Why? (2 marks)