At end of the year, Company X that has just been created realizes a profit of EUR 2.000.000 according to its income statement (profit and loss). During this first year (period), the company notably sold services for an amount of EUR 500.000 to one client that remain unpaid at the end of the year. It purchases and paid IT equipment for EUR 25.000. It contracted a loan agreement for an amount of EUR 600.000 that it will repay after 5 years in once. The amount of the loan has been transferred to the companys bank account during this period. Interest expenses on the loan for the period amounts to EUR 24.000 and is accrued on the balance sheet at the end of the period.

Knowing that the subscribed capital of EUR 1.000.000 has been fully paid to the company during the period, what is the net cash flow generated by the company for that period. Justify your answer.