Question 1.1Calculate the cash balance as at the beginning of the year and state whether the balance is favorable or unfavorable cial M XO OSA Jan21_PGDBM_AFM801_Ma XA Jan21 PGDBM_AFM801_Main_20211112080701%20(1).pdf1).pdf2 / 12100% +INFORMATIONMUSTANG LIMITEDSTATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020Cash flows from operating activities292 000Profit before interest and tax/Operating profit512 000Depreciation128 000640 000Profit before working capital changesWorking capital changes(100 000)8 000Decrease in inventoryIncrease in receivables(76 000)Decrease in payables(32 000)08:3322°C RainENG2021/11/23PrtScrInsertHomeEndDeletF5F6F7F8F9F10F11F12&()Backs5 €78 ncial M XOSA Jan21 PGDBM_AFM801_Ma X +A Jan21 PGDBM_AFM801_Main_20211112080701%20(1).pdf(1).pdf+ |3 / 12100%-Decrease in payables(32 000)Cash generated from operations540 000Interest paid?Dividends paid(120 000)Income tax paid(96 000)Cash flows from investing activities(448 000)(328 000)Non-current assets purchasedIncrease in investments(120 000)Cash flows from financing activities160 000Increase in long-term borrowings160 000Net increase in cash and cash equivalents4 000Cash and cash equivalents at beginning of the year08:3722°CENG2021/11/23- //PrtScrInsertHomeEndDeleteF5F6FZF8F9F10F11F12&()Backspace5 €789

The statement of cash flows is an important financial document that illustrates all of the…

Answered: Question 1.1 Calculate the cash…

Question 1.1 Calculate the cash balance as at the beginning of the year and state whether the balance is favorable or unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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