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The following are the summarised financial statements of Kingsla Motors UK Subsidiary Ltd for the year 31st of December 2020. Profit before taxation (after interest)
The following are the summarised financial statements of Kingsla Motors UK Subsidiary Ltd for the year 31st of December 2020. Profit before taxation (after interest) Depreciation (before tax) Interest receivable Interests payable 15,000,000 2,000,000 45,000 150,000 12,000,000 24,000,000 5,000,000 500,000 200,000 At the beginning of the year: Inventories Trade receivables Trade payables Prepayments Accrued expenses At the end of the year: Inventories Trade receivables Trade payables Prepayments. Accrued expenses 20,000,000 30,000,000 7,000,000 300,000 400,000 he following further payments made within the last financial year: Tax Paid 4,000,000 Interest Paid 700,000 Dividends Paid 5,000,000 a) Critically discuss what insights can be drawn from a statement of cash flows and why this offers important insights beyond what is included in the income statement or balance sheet. (10 marks) b) Based upon just the items included in the operating section of the statement of cash flows, discuss how Kingsla Motors UK Subsidiary Ltd might alter its working capital to increase its cash and cash equivalents. (10 marks) c) Calculate both the cash generated from operations and net cash from operations for Kingsla Motors UK Subsidiary Ltd. (10 marks) The following are the summarised financial statements of Kingsla Motors UK Subsidiary Ltd for the year 31st of December 2020. Profit before taxation (after interest) Depreciation (before tax) Interest receivable Interests payable 15,000,000 2,000,000 45,000 150,000 12,000,000 24,000,000 5,000,000 500,000 200,000 At the beginning of the year: Inventories Trade receivables Trade payables Prepayments Accrued expenses At the end of the year: Inventories Trade receivables Trade payables Prepayments. Accrued expenses 20,000,000 30,000,000 7,000,000 300,000 400,000 he following further payments made within the last financial year: Tax Paid 4,000,000 Interest Paid 700,000 Dividends Paid 5,000,000 a) Critically discuss what insights can be drawn from a statement of cash flows and why this offers important insights beyond what is included in the income statement or balance sheet. (10 marks) b) Based upon just the items included in the operating section of the statement of cash flows, discuss how Kingsla Motors UK Subsidiary Ltd might alter its working capital to increase its cash and cash equivalents. (10 marks) c) Calculate both the cash generated from operations and net cash from operations for Kingsla Motors UK Subsidiary Ltd. (10 marks)
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