QUESTION ONE You have been presented with the consolidated statements of cash flows for Centum Investment Company Plc. Centum Investment Company Plc Consolidated statement of cash flows For the year ended 31 March 2022 2021 Ksh000 Ksh000

Cash flows from operating activities Cash generated from operations 4,951,014 1,661,257 Proceeds from disposal of investment property (land) 1,508,038 2,682,197 Income tax paid (378,638) (89,198) Net cash flows from operating activities 6,080,414 4,254,256

Cash flows from investing activities Purchase of investment properties (24,617) (45,938) Purchases of property, plant and equipment (319,898) (530,594) Purchases of intangible assets (108,286) (206,364) Purchase of shares in associates (34,589) (30,040) Purchase of shares in joint venture (16,455) (314,437) Purchase of unquoted equity investments (224,420) (40,914) Purchase of quoted equity investments (1,024,093) (82,644) Purchase of corporate bonds at amortised cost (762,276) (1,276,894) Purchase of commercial papers at amortised cost (107,669) (604,394) Purchase of government securities at fair value through profit or loss (4,154,275) (2,161,196) Purchase of government securities at amortised cost (7,230,986) (5,420,901) Proceeds from disposal of property, plant and equipment 22,353 - Proceeds from disposal of unquoted investments 71,644 - Proceeds from disposal of commercial papers 255,300 - Proceeds from disposal of quoted investments 1,465,677 78,575 Proceeds on disposal of government securities at fair value through profit or loss 2,315,234 2,990,029 Proceeds on disposal of government securities at amortised cost 3,275,141 2,858,355 Proceeds from disposal of corporate bonds at amortised cost 1,982,210 113,816 Net cash flows from investing activities (4,620,005) (4,673,541)

Cash flows from financing activities Proceeds from borrowings 6,994,741 12,147,793 Repayments of borrowings (6,553,223) (10,425,765) Interest paid on borrowings (3,135,833) (2,571,285) Dividends paid (219,595) (762,735) Payment of principal portion of lease liabilities (124,914) (252,380) Net cash flows from financing activities (3,038,824) (1,864,372) Decrease in cash and cash equivalents (1,578,415) (2,283,657) Movement in cash and cash equivalents At start of year 4,842,612 7,126,269 Decrease (1,578,415) (2,283,657) At end of year 3,264,197 4,842,612

Required Carefully study the statement of cash flows and comment on the companys cash flows in operating, investing and financing activities and their impact on the cash position of the company. (12 Marks)