The following information has been extracted from the records of SHAPE Ltd that sells sports equipment across South Africa. The following information has been extracted for the year ended 30 September 2018. SHAPE Ltd Extract from the statement of profit or loss and other comprehensive income for the year ended 30 September 2018 *Question continues on next page SHAPE Ltd Cach flow etatement far the vear anded 3n Centemher on18 2.1 Which one of the following statements is correct? A. SHAPE Ltd had a positive cash flow for the year ended 30 September 2018. B. SHAPE Ltd has a debit balance in the bank account on 30 September 2018 of R499 440 . C. SHAPE Ltd has credit balance in the bank account on 30 September 2018 or R499 440. D. SHAPE Ltd had a credit balance in the bank account on 1 October 2017 of R29 000. E. None of the statements are correct. 2.2 When analysing the cash flow statement of SHAPE Ltd for the year ended 30 September 2018, it is evident that the largest portion of the negative cash flow can be attributed to: A. Operating activities B. Investment activities C. Financing activities D. The net loss E. The issue of ordinary shares 2.3 Which one of the following statements is correct when analysing the cash flow statement of SHAPE Ltd for the year ended 30 September 2018, especially when considering cash flow from financing activities? A. SHAPE Ltd had a positive cash flow from financing activities for the year ended 30 September 2018 of R1 000000. B. SHAPE Ltd had a negative cash flow from financing activities for the year ended 30 September 2018 of R1 000000. C. The increase in the mortgage bond of R550 000 decreases the liability (mortgage bond). D. The issue of ordinary shares of R450 000 would result in a debit to equity. E. None of the statements are correct. 2.4 When analysing the cash flow statement of SHAPE Ltd for the year ended 30 September 2018 , it is evident that a large portion of positive cash flow can be attributed to: A. The purchase of land. B. Profit earned for the year. C. The interest received. D. The issue of ordinary shares. E. None of the above. 2.5 Which decision by the board through the financial year could have placed SHAPE Ltd in a better cash position on 30 September 2018? A. Pay the creditors and suppliers earlier. B. Do not issue any shares. C. Increase the investment in land and new equipment. D. Declare and pay more dividends. E. None of the above