Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

REQUIRED Study the statement of cash flows given below and answer the following questions: 1.1 Calculate the following: 1.1.1 Dividends paid (2 marks) 1.1.2 Carrying

image text in transcribedimage text in transcribed

REQUIRED Study the statement of cash flows given below and answer the following questions: 1.1 Calculate the following: 1.1.1 Dividends paid (2 marks) 1.1.2 Carrying value (Book value) of the equipment sold (2 marks) 1.1.3 Cash and cash equivalents at the end of year (2 marks) 1.2 Identify TWO (2) items from this statement of cash flows that improve cash flow but do not increase profit. (2 marks) 1.3 Explain why depreciation is added to operating profit in computing the cash flow from operating activities. (2 marks) 1.4 There is a combination of a positive cash flow from operating activities of R1 504000 and a negative cash flow from investing activities of R8 384 000. Is this favourable for Sinclair Lid? Provide THREE (3) reasons for your answer. (6 marks) 1.5 Comment on the following: 1.5.1 Decrease in inventory, R264 000 (2 marks) 1.5.2 Increase in receivables, (R3 712000 ) (2 marks) INFORMATION

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Criteria For Electronic Document Management Processes And Associated IT Solutions

Authors: Alexander D Balzer, Dr Klaus-Peter Elpel, Volker Feist

5th Edition

3932898281, 978-3932898280

More Books

Students also viewed these Accounting questions