From the following cash flow statement of FinoTrade Corporation Ltd. for the year ending 31 st March 2021, analyze the following: 1. Is the cash flow from operations adequate to pay medium- and long-term debt? 2. To what extent the firm financed its investment from internal resources? 3. Can the firm raise capital and how its shareholding structure is? Cash Flow Statement For the year ending 31 st March 2021

Particulars	RS
I. Cash flows from Operating Activities: Net profit before taxation & extraordinary items Provision for: Depreciation on equipment Depreciation on furniture Patents written-off Loss on sale of equipment	2,70,000 15,000 30,000 5,000 5,000
Operating Profit before Working capital Changes Decrease in Trade payables + Increase in Outstanding rent Increase in Trade receivables Increase in inventories	3,25,000 (5,000) 2,000 (40,000) (80,000)
Cash generated from Operating activities () Tax paid	2,02,000 (30,000)
A. Cash Inflows from Operating Activities	1,72,000
II. Cash flows from Investing Activities: Proceeds from sale of equipment Purchase of new equipment Purchase of Investments	30,000 (80,000) (1,00,000)
B. Cash used in Investing Activities	(1,50,000)
III. Cash flows from Financing Activities: Issues of equity share capital Repayment of bank loan Payment of dividend	2,00,000 (50,000) (50,000)
C. Cash Inflows from Financing Activities	1,00,000
Net increase in Cash & Cash Equivalents (A+B+C) (+) Cash and Cash Equivalents in the beginning	1,22,000 2,05,000
Cash and Cash Equivalents in the end	3,27,000