Question 3(11 marks)

The following information about Melbourne Corp. applies to the entity for the year ended 30 June.

Payment to suppliers

170 000

Receipts from owners

399 000

Receipts from long-term borrowing

365 000

Payment of rates

150 000

Payment of wages

130 000

Purchase of land

120 000

Repayment of long-term borrowing

185 000

Receipts from customers

620 000

Payment for equipment

200 000

Depreciation on equipment

110 000

Required:

a)What was Melbourne Corp.'s cash flow from the following activities? (8 marks)

• Operating activities
• Investing activities
• Financing activities

b)In your own words, outline and briefly discuss some cash-flow warning signals. (3 marks)