Chintsa Company is in the wholesale and delivery Business. Their revenue increased significantly in 2020/21 to 2021/22. You are director and there is a board meeting in one week

1. Do a cash flow analysis for 2021/22. (10)

CHINTSA 2021/02/29 2022/02/28 10 506 679 10 865 388 12 861 768 2 869 667 16 077 209 3 587 084 0 8 798 906 34 394 560 9 517 923 21 514 603 STATEMENT OF FINANCIAL POSITION 2019/02/28 2020/02/28 FIXED ASSETS 4 851 328 7 123 683 Land and Buildings Vehicles 4916 698 8 048 537 Equipment 546 300 1 440 582 NEW Accum. Depreciation (-) 611 670 2 365 435 CURRENT ASSETS 21 747 190 21 098 615 Inventory 3 982 805 4 693 152 Debtors (Receivables) 7 398 935 9 758 863 Bank / Cash 10 363 258 6 287 088 Provisions/Tax 83 860 Other 2 191 275 652 TOTAL ASSETS 26 598 517 28 222 299 EQUITY: 16 837 954 17 471 958 Owners Contribution 10 10 Retained Earnings 16 082 993 17 075 773 Other Shareholders' Loans 754 951 396 175 TERM LOANS Bond/Term Loans Asset Financing CURRENT LIABILITIES 9 760 563 10 750 340 Creditors 8 430 345 9 133 946 Bank Overdraft Provisions Other 1 330 218 1 616 394 TOTAL CAPITAL 26 598 517 28 222 298 5224 755 25 557 819 7 040 337 14 803 107 352 341 3 316 431 45 603 36 064 498 18 929 324 10 3 316 431 45 603 45 259 947 19 524 216 10 18 525 365 17 930 473 998 841 998 841 17 135 174 15 079 496 25 735 731 17 753 291 5 926 762 2 055 678 2 055 678 36 064 498 45 259 947 2021/02/29 92 253 667 81 327 929 10 925 738 1 557 464 12 483 202 STATEMENT OF COMPREHENSIVE INCOME 2019/02/28 2020/02/28 SALES/REVENUE 55 097 191 62 980 238 COST OF SALES 49 593 180 55 178 062 GROSS PROFITI 5 504 012 7 802 176 Other Income 976 333 1 457 124 GROSS PROFIT II 6 480 345 9 259 300 OPERATING EXPENSES 4 706 670 6 970 266 Advertising 200 000 220 000 Bank Charges 220 000 242 000 Commission Paid 100 000 110 000 Computer Expenses 300 000 330 000 Depreciation 491 670 1 753 766 Employee Costs 2 350 000 2 815 000 Entertainment 130 000 143 000 Insuarance 90 000 99 000 Lease Rentals 380 000 418 000 Legal Expenses 80 000 88 000 Motor Vehicle Expenses 33 000 36 300 Municipal Expenses 60 000 66 000 Printing & Stationary 32 000 35 200 Bad Debt 100 000 Stock Losses 250 000 Other Expenses 240 000 264 000 OPERATING PROFITS 1 773 675 2 289 034 less: Interest Paid 81 000 76 840 + Abn. Income / - Expense PROFIT BEFORE TAX 1 692 675 2 212 194 TAX (28%) 473 949 619 414 NET PROFIT After Tax 1 218 726 1 592 780 DIVIDENDS 600 000 RETAINED EARNINGS 1 218 726 992 780 9 845 795 253 000 278 300 126 500 379 500 2 859 320 3 487 250 164 450 113 850 480 700 101 200 41 745 75 900 40 480 1 000 000 140 000 303 600 2 637 407 366 990 2022/02/28 110 704 401 97 593 515 13 110 886 1 713 210 14 824 096 12 459 479 316 250 347 875 158 125 474 375 3574 150 4 568 298 205 563 142 313 600 875 126 500 52 181 94 875 50 600 1 200 000 168 000 379 500 2 364 617 410 633 2 270 417 635 717 1 634 700 780 000 854 700 1 953 984 547 115 1 406 868 811 977 594 892 2022/02/28 CASH FLOW STATEMENT FOR THE YEAR ENDING: 2019/02/28 2020/02/28 2021/02/29 Operating Profit 1 773 675 2 289 034 2 637 407 Minus: Interest 81 000 76 840 366 990 Plus: Depreciation 491 670 1 753 766 2 859 320 Plus/Minus: Other Minus: Tax 473 949 619 414 635 717 Cash Flow from Operations 2 658 294 3 346 545 4494 020 Change in Current Assets: 3 427 596 10 393 951 - Stock 710 347 2 347 185 Debtors 2 359 928 5 044 244 - Prov/Other 357 321 - 3 002 522 Change in Fixed Assets 4026 121 6 242 316 Change in Current Liabilities: 989 777 6 384 833 - Trade Creditors 703 601 5 945 550 - Provisions - Other 286 176 439 284 Term Loan Owners Contr/Other Dividend 600 000 780 000 Shareholders Loans 358 776 602 666 Net Cash Flows 4 076 170 5 934 747 2019/02/28 2020/02/28 2021/02/29 2022/02/28 10,0% 3,2% 3,1% 2,2% 0,0% 12,4% 3,6% 3,5% 2,5% 37,7% 11,8% 2,9% 2,5% 1,8% 47,7% 11,8% 2,1% 1,8% 1,3% 57,7% 2,07 29,31 30% 70,02 62,05 2,23 31,04 30% 80,80 60,42 2,56 31,60 30% 83,67 67,68 2,45 35,60 20% 88,67 66,40 RATIO ANALYSIS PROFITABILITY: Gross Profit Margin Operating Profit Margin Net Profit Before Tax Net Profit After Tax Dividend/NPAT ACTIVITY: Total Asset Turnover Stock Days Cash Sales / Total Sales Debtor Days Creditor Days LIQUIDITY: Current Ratio Acid Test Ratio SOLVENCY: Interest Cover Debt Ratio RETURN ON ASSETS RO A Before Interest RO A After Interest RETURN ON EQUITY RO E Before Tax ROE (NPAT) GROWTH RATIOS Sales Net Profit before Tax Assets Debt 2,23 1,82 1,96 1,53 1,49 1,08 1,34 0,97 21,90 36,7% 29,79 38,1% 7,19 47,5% 5,76 56,9% 6,67% 6,36% 8,11% 7,84% 7,31% 6,30% 5,22% 4,32% 10,05% 7,24% 12,66% 9,12% 11,99% 8,64% 10,01% 7,21% 14,3% 30,7% 6,1% 10,1% 46,5% 2,6% 27,8% 59,4% 20,0% -13,9% 25,5% 50,2%