Cash flow statement for the year ended 31 December 2019

	$	$
Cash flows from operating activities
Profit before interest and tax	405,500
Adjustments for:
Depreciation	30,000
Write off of goodwill	25,000
Gain on disposal of assets	(13,000)
Increase in inventories	(4,000)
Decrease in trade receivables	4,000
Increase in trade payables	8,000
Interest paid	(8,500)
Taxation paid	(115,000)
Net cash flow from operating activities		332,000
Cash flow from investing activities
Purchase of assets	(368,000)
Sale of assets	85,000
Net cash flow from investing activities		(283,000)
Cash flow from financing activities
Issue of shares (including premium)	60,000
Redemption of long-term borrowings	(85,000)
Dividends paid	(25,000)
Net cash flow from financing activities		(50,000)
Net increase in cash and cash equivalents		(1,000)
Cash and cash equivalents at the beginning of the period		32,000
Cash and cash equivalents at the end of the period		31,000

Analysis of changes in cash and cash equivalents

	Year 1	Year 2	Change
Bank	(5,000)	10,000	15,000
Cash	7,000	1,000	(6,000)
Short term investment	30,000	20,000	(10,000)
Total	32,000	31,000	(1,000)

Required:

1. Discuss Anthonys THREE (3) purposes of a cash flow statement. B. Comment on the performance of the company citing relevant items from the cash flow

statement that will help Anthony understand the companys position. C.Suggest FOUR (4) strategies that a company can implement to improve its cash flow

position.