Good dayPlease refer to attachments for question and information MUSTANG LIMITEDSTATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020RCash flows from operating activities292 000Profit before interest and tax/Oparating 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)Cash generated from operations540 000Interest paidDividends 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 yearCash and cash equivalents at end of the year36 000 Study the statement of cash flows of Mustang Limited given below and answer the following questions:1.1Calculate the cash balance as at the beginning of the year and state whether the balance isfavourable or unfavourable.1.2Calculate the amount of interest paid for the year ended 31 December 2020.1.3Identify one item from the statement of cash flows below that increases cash flow but not profit.1.4Explain why depreciation is added to the operating profit.1.5Comment on the following cash flows of Mustang Limited:Cash flows from operating activities R292 0001.5.11.5.2Increase in receivables (R76 000)1.5.3Cash flows from investing activities (R448 000)1.5.4Cash flows from financing activities (R160 000)

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Study the statement of cash flows of Mustang Limited given below and answer the following questions: 1.1 Calculate the cash balance as at the beginning of the year and state whether the balance is favourable or unfavourable. 1.2 Calculate the amount of interest paid for the year ended 31 December 2020. 1.3 Identify one item from the statement of cash flows below that increases cash flow but not profit.

Study the statement of cash flows of Mustang Limited given below and answer the following questions: 1.1 Calculate the cash balance as at the beginning of the year and state whether the balance is favourable or unfavourable. 1.2 Calculate the amount of interest paid for the year ended 31 December 2020. 1.3 Identify one item from the statement of cash flows below that increases cash flow but not profit.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 27BE

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