The following is the Statement of Cash Flows of Always Fresh Pte Ltd for the financial year ended 30 September 2018. Always Fresh Pte Ltd Statement of Cash Flows (Indirect Method) For Year Ended 30 September 2018 $ $ 198,750 42,000 (19,000) (10,500) (119,500) 91,750 (33,750) Cash flows from operating activities Profit before tax Adjustments to reconcile profit to net cash provided by operating activities Depreciation expenses Increase in accounts receivable Decrease in accounts payable Increase in inventories Cash generated from operating activities Income tax paid Net cash from operating activities Cash flows from investing activities Cash paid for an energy-saving refrigeration system* Net cash used in investing activities Cash flows from financing activities Repayment of debt Net cash used in financing activities Net decrease in cash Cash balance at 1 October 2017 Cash balance at 30 September 2018 58,000 (100,000) (100,000) (50,000) (50,000) (92,000) 205,670 113,670 * The energy-saving refrigeration system is expected to reduce fruit and vegetable spoilages and improve energy efficiency substantially. Required: (a) The CEO was puzzled that despite a net profit of $198,750, the bank account decreased from $205,670 on 1 October 2017 to $113,670 on 30 September 2018. Examine and explain the main causes and comment on the company's cash level to the CEO. (18 marks) (b) Based on the Statement of Cash Flows, identify the possible business actions that Always Fresh Pte Ltd can take to improve cash flows from operations. (4 marks)