QUESTION 5 CASH FLOW (20 Marks) Required: Use the following information extracted from the accounting records of HR LTD. for the year ended 28 February 2017 to answer the questions that follow INFORMATION: A. Extracts from the Statement of Comprehensive Income for the year ended 28 February 2017 Depreciation 81 000 Loss on sale of assets 21 000 Interest income 24 000 Interest expense 17 000 Company income tax 63 000 Profit before interest 320 000 2016 699 600 180 000 B. Extracts from the Statement of Financial Position as at 28 February 2017 2017 Fixed Assets 790 590 Inventories 160 000 Trade and Other Receivables Debtors Control 67 335 Accrued income 465 Prepaid expenses 200 SARS: Income Tax Bank [DR] 49 000 Trade and Other Payables Creditors Control 45 885 Deferred Income 4000 Accrued expenses 175 SARS: Income tax 10 000 Shareholders for dividends 43 200 Bank overdraft 82 305 290 105 47 000 57 305 1 200 900 37 000 5 000 C. Additional information: Some equipment was sold for R16 500 cash, resulting in a loss of R21 000. New equipment was purchased during the year. Additions were made to the buildings during the year. . cs. Interim dividends paid amounted to R20 800. CamScanner In each of the following questions indicate whether the final calculated amount is an Inflow or an (outflow). 5.1 Calculate the profit before changes in the Working Capital. (4 marks) 5.2 Calculate the cost of fixed assets purchased during the year. Hint: Use the carrying values. (4 marks) 5.3 Calculate the change in Trade and other Receivables. (3 marks) 5.4 Calculate the change in Trade and other Payables. (3 marks) 5.5 Calculate the dividend amount paid during the year. (3 marks) 5.6 Calculate the net irictease or decrease in for Cash and Cash Equivalent. CamScanner