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hello please 10 mins left chocolate company to take on Santa and his for a new loan and wants your help and advice. Unfortunately, he
hello please 10 mins left
chocolate company to take on Santa and his for a new loan and wants your help and advice. Unfortunately, he You statement for the year ended, December 31, 2021 for you to review. Mr. Grinch Chocolates Ltd. Cash Flow Statement For the year ended, December 31, 2021 Operating Activities: Net Income $ 250,000 +- Non-cash items Depreciation Expense 120,000 Gain on sale of land (40,000) +/- Changes in working capital Increase in Accounts Receivable (223,000) Increase in Inventory (168,000) Increase in Accounts Payable 9,000 Net cash used in operating activities (50,000 Investing Activities: Proceeds from sale of land 120,000 Purchase of new equipment (95.000) Net cash provided by investing activities 25.000 Financing Activities: Obtained new bank loan 40,000 Repayment of old bank loan (60,000) Cash dividends paid to shareholders (25,000) Net cash used in financing activities (45.000) Net change to cash + Cash at beginning of year (70,000) Cash at end of year 80.000 10,000 The le 0-11.47 Assume you are the BANK. Do you see any warning signs in the Statement of Cash Flows that would influence your decision to end money to Mr.Grinch Identify and discuss at least four areas of concern Note: Your response will be marked for depth in discussion". A good quality response will fully explain the relevance of each issue from a cash flow perspective ter will be considered by the banker in deciding whether to grant the loan. % $ Step by Step Solution
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