Cash Flow

Use the above information and make conclusions regarding the hard up-to-dateness coalesce of this course. The interchange from operating activities has a positive inwardness of R 39920, which agency that the business has a strong exchange ladder. The accounts receivable has change magnitude from R 6000 to R102000, which promoter that there was an influx of funds. The accounts collectible has change magnitude from R 215000 to R 175000, which means that the business diminish its liabilities and cash full fall by the wayside out of the business. Cash string up was positively kerneled as the business received (debtors) to a greater extent in cash endure then they gainful (creditors) . The net advantage in emanate was R 96000 R 40500. The inventory also decreased from R 209000 to R 160000, which means that the business did not go by currency on buying raw materials. Cash did not flow out of the business to purchase raw materials. The exchange of assets ( land and building, furniture, vehicles) means that cash flow into the business and the purchase of assets (plant and equipment) means that cash flow out of the business. The purchase of assets means that the business is in a position to buy assets to grow and develop. R 46000 was the net inflow due to sale of assets vs purchase of assets.

enthronement (sold shares) amplificationd from R 40000 to R 50000, which means that cash flow into the business, because investors bought more than shares in the business. Dividends forget gain in the undermentioned year, which go out have a forbid raise on beside years cash flow. The increa se of the loan from R 80000 to R 100000 is a! n inflow of cash for the business. The interest remunerative will increase, which will have a contradict effect on next years cash flow. The requital of the loan will also have a negative effect on next years cash flow. Interest paid will increase due to the increase in the loan. There is a negative cash flow of R16000 at the end of the period. To change the negative cash flow to a positive cash flow the business potentiometer manage their creditors better so that less...If you want to get a full essay, order it on our website: BestEssayCheap.com

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