STATEMENT OF CASH FLOWS FOR THE YEAR ENDED $31$ DECEMBER $2021$

Cash flows from operating activities

Profit before interest and tax$/$Operating profit $900000$ Adjustments to convert to cash from operations $?$

Add: Depreciation $????$

R

$756000$

Profit before working capital changes Working capital changes

Decrease in inventory

Increase in receivables

Increase in payables

Cash generated from operations Interest income

Dividends paid

Company tax paid

Cash flows from investing activities

Non$-$current assets purchased

Proceeds from sale of vehicles $($sold at a profit of R$150000)$ Increase in long$-$term investments

Disposal of long$-$term investments $($disposed at a loss of R$150000)$

Cash flows from financing activities

Proceeds from issue of ordinary shares

Net increase$/$decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

$252000$

$?194400288000(396000)302400134640072000?(388800)$

$(1368000)(1476000)$

$540000(612000)180000$

$720000720000$

$?792000?$

REQUIRED

Answer the questions below that are based on the Statement of Cash Flows for the year ended $31$ December $2021$ provided above:

$1\mathrm{.}1$ Calculate the following:

$1\mathrm{.}1\mathrm{.}1$ Dividends paid

$1\mathrm{.}1\mathrm{.}2$ Cash and cash equivalents at the end of the year

$1\mathrm{.}1\mathrm{.}3$ Carrying$/$Book value of the vehicles sold

$1\mathrm{.}2$ Apart from depreciation $($R$252000),$ identify TWO $(2)$ other adjustments $($with the

amounts$)$ that would be needed to convert to cash from operations.

$1\mathrm{.}3$ Comment on the following:

$1\mathrm{.}3\mathrm{.}1$ Cash flows from operating activities R$756000$

$1\mathrm{.}3\mathrm{.}2$ Increase in receivables $($R$396000)$

$1\mathrm{.}3\mathrm{.}3$ Cash flows from investing activities $($R$1368000)$