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$\backslash$table$[[\backslash$table$[[$BENNETON LIMITED$],[$STATEMENT OF CASH FLOWS FOR THE YEAR ENDED $31$ DECEMBER $2022]]],[,$R$],[$Cash flows from operating activities,$3400000],[$Operating profit$/$lncome from operations,$6000000],[$Adjustments to convert to cash from operations$],[$Non$-$cash flow adjustments,$1400000],[$Add: Depreciation,$1400000],[$Profit before working capital changes,$7400000],[$Working capital changes,$(1200000)],[$Decrease in inventory,$100000],[$Increase in receivables,$(900000)],[$Decrease in payables,?$],[$Cash generated from operations,$6200000],[$Interest paid,$(400000)],[$Investment income,?$],[$Dividends paid,$(1600000)],[$Income tax paid,$(1140000)],[$Cash flows from investing activities,$(5200000)],[$Non$-$current assets purchased,$(3800000)],[$Increase in investments,$(1400000)],[$Cash flows from financing activities,?$],[$Increase$/$Decrease in long$-$term borrowings,?$],[$Net increase in cash and cash equivalents,$60000],[$Cash and cash equivalents at beginning of year,$(40000)],[$Cash and cash equivalents at end of year,$20000]]$

QUESTION $1(20$ Marks$)$

REQUIRED

Study the Statement of Cash Flows given below and answer the following questions:

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

$1\mathrm{.}1\mathrm{.}1$ Decrease in payables $(2$ marks$)$

$1\mathrm{.}1\mathrm{.}2$ Interest income. $(2$ marks$)$

$1\mathrm{.}2$ Did the company increase or decrease its non$-$current liabilities? Also indicate the

amount. $(3$ marks$)$

$1\mathrm{.}3$ State THREE $(3)$ significant changes to the financial position that are evident in this

Statement of Cash Flows that the Statement of Comprehensive Income would not reveal. $(3$ marks$)$

$1\mathrm{.}4$ Comment on the following:

$1\mathrm{.}4\mathrm{.}1$ Decrease in inventory of R$100000(2$ marks$)$

$1\mathrm{.}4\mathrm{.}2$ Increase in receivables of R$900000(2$ marks$)$

$1\mathrm{.}4\mathrm{.}3$ Cash flows from operating activities of R$3400000(2$ marks$)$

$1\mathrm{.}4\mathrm{.}4$ Non$-$current assets purchased for R$3800000(2$ marks$)$

$1\mathrm{.}4\mathrm{.}5$ Increase in investments of R$1400000.(2$ marks$)$

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