The following is a statement of cash flows for XYZ (LTD) for the year ended 30 September

details

BWP

BWP

CASH FLOW OPERATING ACTIVITIES;
Net profit for the year	951 000
Income tax	----
Interest on debentures	----
Dividents	-----
Adjustments for non-cash movement items;
Depreciation	260 000
Amortisation of goodwill	30 000
Deferred income taxes	20 000
Profit on disposal of asset	(2000)
	1259 000
Changes in working capital:
increase in inventory	(303 000)
increase in receivables	(90 000)
increase in payables	180 000
Operating cash flows	1046 000
Less: tax paid	-----
interest paid	-----
dividents paid	(750 000)
Net cash generated from operations		296 000
Cash flow from investing activities:
Proceeds from disposal of fixed asset	18 000
acquisition of new assets	(1774 000)
Net cash used in investing activities		(1816 000)
cash flow from financing activities:
Cash flow from financing activities:
issue of new bonds	400 000
issue of new shares at a premium	1000 000
repayment of debentures	------
Net cash generated from		1400 000
Net cash used during the year		(120 000)
Add: Balance brought forward from previous year		240 000
Balance at the end of year		120 000

Required :

Analyse the standing of the XYZ (ltd) based on the statement of cash flow. 20 Marks