QUESTION $1$

Gambia Co$.$ made a net loss of $$500,000$ in the year. Depreciation expense was $$200,000.$ During the year, accounts receivable decreased by $$50,000,$ and inventory increased by $$25,000.$ Accounts payables increased by $$75,000.$

Required

$($a$)$ Calculate the cash from or cash used in operations. $(10$ marks$)$

$($b$)$ Comment on the operating cash flow calculated in $($a$)$ above. $(5$ marks$)$

$($c$)$ If the company borrowed $$300,000$ from the bank during the year and had no cash from$/$used in investing activities, comment on the implications of the cash flow statement for the company $(10$ marks$)$