Question
Anayize the followng cash flow and provide analysis in which year the company cash flow was good and what alternative strategis should the company take
Anayize the followng cash flow and provide analysis in which year the company cash flow was good and what alternative strategis should the company take to enhance its cash flow further.
2016 000's2015000's
Cash inflow/(outflow) from operating activities
Profit for the financial year before tax 3,081 1,510
Finance income (9) (43)
Finance costs 303 139
Profit on disposal of plant and equipment (1) -
Amortisation 486 184
Depreciation 228 217
Share-based payments 57 23
Tax paid (678) (282)
3,467 1,748
Changes in working capital
Decrease in inventories 7 15
(Increase)/decrease in trade and other receivables (693) 21
Increase in trade and other payables 1,894 264
Cash inflow from operating activities 4,675 2,048
Cash flow from investing activities
Purchase of intangible software assets (285) (590)
Purchase of property, plant and equipment (51) (148)
Disposal of property, plant and equipment 4 -
Acquisition of associates/investments (575) (100)
Acquisition of subsidiary (net of cash acquired) - (998)
Interest received 9 43
Net cash used in investing activities (898) (1,793)
Cash flow from financing activities
Share issue proceeds (net of issue costs) 55 4,476
Dividends paid (1,838) (3,470)
Interest paid (303) (139)
New loans - 4,000
Repayment of loans (720) (4,329)
Net cash generated (used in)/from financing activities (2,806) 538
Net increase in cash and cash equivalents 971 793
Cash and cash equivalents at beginning of financial year 2,810 2,017
Cash and cash equivalents at end of financial year 3,781 2,810
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