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The company has made a profit in the year 31 December 2012, yet has generated a cash outflow of 89,813. a) Explain, using both facts

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The company has made a profit in the year 31 December 2012, yet has generated a cash outflow of 89,813. a) Explain, using both facts and figures, how OMLT has made a profit yet has suffered a significant negative cash outflow. What significance does this have for the credit decision? (5 marks) b) Evaluate the usefulness of the cash flow statement in supporting your case for reducing the credit limit of this new customer. (3 marks) c) What effect might the issue highlighted in the audit opinion have on both the company's future profit and on its cash flow? (2 marks) Total 10 marks

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