Required: Based on the results of the financial statements prepared, provide an explanation as to your overall assessment of the companys cash management 
Cash Flows Statement as of 31 December 2019 Operating Activities: Net Income before Tax add: Non-cash expense Depreciation, Amortization and Impairment expense 6 100,33 6 739.67 12 840,00 (3 000,00) Income Tax paid Changes from Working Capital: Increase in Accounts Receivables Increase in Inventories Decrease in Prepayment Increase in Accrued Income Increase in Accounts Payable Increase in Salaries Payable Increase in Rent Payable Increase in Selling and Distribution Expense Payable Net Cash flow Operating- Inflow 2 000,00 (840,00) 1 200,00 (3 750,00) 320,00 470,00 1 535,00 1 500,00 12 275,00 Investing Activities: Acquired PPE: Equipment Net Cash flow Investing-Outflow (10 000,00) (10 000,00) Financing Activities: Issuance of Capital: shares Issuance of Capital: Additional Paid-In Capital Dividends paid Net Cash flow Financing-Outflow Net CASH FLOW Cash Beginning Cash end (Bank Overdraft) 2 000,00 1 000,00 (10 000,00) 17 000,00) (4 725,00) 1 295,00 (3 430,00) Income Statement For the Period 31 December 2019 Sales less: Cost of Goods Sold Gross Profit 48 000,00 20 710,00 27 290,00 Add: Other Income Total Operating Income 3 750,00 31 040,00 Less: Operating Expenses Total General and Administrative Expenses Total Selling and Distribution expenses Earnings before Interest, Tax,Depreciation and Amortization Less: Depreciation, Amortization and Impairment expense Earnings before Interest and Tax Less: Interest expense Net Income before Tax Less: Income Tax expense (30%) Net Income (9 033,00) (9 000,00) 13 007,00 (6 406,67) 6 600,33 (500,00) 6 100,33 (1 830,10) 4 270,23 Statement of Changes in Equity as of 31 December 2019 Capital Beginning Add: Issued Capital Additional Paid-In Capital beginning Add: Issued Additional Paid-In Capital Total Shareholder's Capital 5 000,00 2 000,00 2 000,00 1 000,00 10 000,00 Retained Earnings beginning Add: Net Income Less: Dividends Paid Retained Earnings end 2 225,00 4270,23 (10 000,00) (3 504,77) Cash Flows Statement as of 31 December 2019 Operating Activities: Net Income before Tax add: Non-cash expense Depreciation, Amortization and Impairment expense 6 100,33 6 739.67 12 840,00 (3 000,00) Income Tax paid Changes from Working Capital: Increase in Accounts Receivables Increase in Inventories Decrease in Prepayment Increase in Accrued Income Increase in Accounts Payable Increase in Salaries Payable Increase in Rent Payable Increase in Selling and Distribution Expense Payable Net Cash flow Operating- Inflow 2 000,00 (840,00) 1 200,00 (3 750,00) 320,00 470,00 1 535,00 1 500,00 12 275,00 Investing Activities: Acquired PPE: Equipment Net Cash flow Investing-Outflow (10 000,00) (10 000,00) Financing Activities: Issuance of Capital: shares Issuance of Capital: Additional Paid-In Capital Dividends paid Net Cash flow Financing-Outflow Net CASH FLOW Cash Beginning Cash end (Bank Overdraft) 2 000,00 1 000,00 (10 000,00) 17 000,00) (4 725,00) 1 295,00 (3 430,00)
