Reference no: EM133207191

The following information relates to Dineo PLC for the year ended 30th June 2010

1. The Operating profit before tax was P241 000

2. The Depreciation charge for the year amounted to P61 000

3. The company sold fixed assets and received P47 000 as cash

4. The company rewarded shareholders by giving them a dividend amounting to P34 000

5. The company paid P94 000 to BURS as tax

6. The financial director paid back P68 000 of the loan taken from a local bank

7. The company increased their level of stock by P32 000

8. The level of creditors increased by P36 000

9. In an attempt to raise more cash the company issued out some shares amounting P20 000

10. The level of debtors fell by P22 000

11. The interest paid on the loan was P26 000

12. An extra amount of P81 000 was spent on fixed assets

13. The cash balance at the beginning of the period is P40 000

REQUIRED:

a. Provide a statement of cashflows for the year ended 30th June 2010.

b. Briefly explain the importance of the statement of cashflows.

c. Define operating activities as presented in the statement of cashflows.