Financial Position For the Year 2021, the Year 2020

Assets

Cash ? [Y2021] ? [Y2020]

Current Assets 1622,000 [Y2021) , 1350,000 [Y2020]

Fixed Assets 6438,000 [Y2021] , 4500,000 [Y2020]

Accumulated Depreciation (1740,000) [Y2021] , (1500,000) [Y2020]

Investment in affiliate 2030,000 [Y2021] , (1950,000) [Y2020]

Total Assets 8350,000 [Y2021] , 6300,000 [Y2020]

Liabilities

Accounts Payable 590,000 [Y2021] , 360,000 [Y2020]

Other Accruals 260,000 [Y2021] , 240,000 [Y2020]

Current Liabilities 850,000 [Y2021], 600,000 [Y2020]

Bank Loan 510,000 [Y2021] , 130,000 [Y2020]

Bond Due in 2040 130,000 [Y2021], 130,000 [Y2020]

Provision for income tax 60,000 [Y2021], 40,000 [Y2020]

Total Liabilities 1550,000 [Y2021] , 900,000 [Y2020]

Equities

Share Capital 4500,000 [Y2021], 3300,000 [Y2020]

Retained Earnings 2300,000 [Y2021], 2100,000 [Y2020]

Total Equity 6800,000 [Y2021] , 5400,000 [Y2020]

Total Liabilities & Equities 8350,000 [Y2021], 6300,000 [Y2020]

Profit & Loss Account of 2021

Sales 19950,000

COGS (10698,000)

Gross Profit 9252,000

General & Administrative Expenses (7100,000)

Depreciation (240,000)

Gain on Sale of Fixed Asset 8,000

Earnings before interest & taxation 1920,000

Interest (50,000)

Earnings before taxation 1870,000

Taxation (920,000)

Net Income 950,000

[Do Not Use Excel] [Show Workings]

Questions

A) Examine the cash flow from assets for the year 2021? [10 marks}

B) Examine the cash flow to creditors for the year 2021? [5 Marks]

C) Examine the cash flow to shareholders for the year 2021? [5 marks]

D) Evaluate three points that can be concluded with these three sets of cash flows? [15 marks]

E) Discuss how the firm was financed in the year 2021 by commenting on the level of gearing in the year 2021? [10 marks]

F) Henceforth, infer the likely level of the return of equity in the previous year 2020, justify your response? [5 marks]