QUESTION-1-(20-Marks) 1 Mika Limited CASH FLOW STATEMENT FOR THE YEAR ENDED 30 NOVEMBER 2012 R 840 000 900 000 380 000 Cash flows from operating activities Profit before interest and tax/Operating profit Adjustment to convert to cash from operations Profit before working capital changes Working capital changes Decrease in inventory Increase in receivables Increase payables Cash generated from operations Interest income Dividends paid Income tax paid Cash flow from investing activities Non-current assets purchased Proceeds from sale of vehicles (sold at a loss of R20 000) Increase in long-term investments Disposal of long-term investments (disposed at a profit of R10 000) Cash flow from financing activities Proceeds from the issue of ordinary shares Net increase in calis and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 1 280 000 216 000 320 000 (440 000) 336 000 1 496 000 80 000 (304 000) 2 (1 520 000) (1 640 000) 600 000 (680 000) 200 000 800 000 800 000 2 880 000 2 23.4.5.6.7.8:0.9::10- 1.11.-12. 113:1:14:15:1-16--17.00 REQUIRED Answer the following questions that are based on the Cash Flow Statement 1 1 11. - Calculate the following 1 1.1.1.- Income tax paid (2 mark) 1 1 1.12-Cash-and-cash-equivalents at the end of the year. (2 marks) 1 1 1 1.13.-Carrying Book-value of the vehicles sold (2 marks) 1 1 12 - Apart from depreciation, name two other adjustments that would be needed to convert to cash from operations. (2 marks) 1 1 1 1.3. - Comment on the following by stating your observations and making recommendations, where applicable 1 1.3.1-Decrease in inventory (2 marks) 1 13 2.- Increase in receivables (2 marks) 1 1 1 13.3.-Cash flow from investing activities (4 marks) 1 1 1 1.3 4 - Financing activities (4 marks) 1.3.5-1 Page Break Display Settings C Focus