West Indian Tobacco Company Limited Income Statements For the years ended December 31, 2020 & 2021 2020 2021 ('000s) ('000s) Sales 899,917 852,251 Cost of Sales (211,020) (207.461) Gross Profit 688,897 644,790 Distribution Costs (10,905) (9,931) Administrative Expenses (75,537) (73,629) Other Operating Expenses (15,241) (23,838) Interest Income 1,210 116 Other Income/(Expenses) 9,552 9,314 Earnings before Interest & Taxes 597,976 546,822 Interest Expense (348) (296) Taxable Income 597,628 546,526 Taxation (178,055) (158,183) Net Income 419,573 388,343 Dividends Paid 364,516 Add to Retained Earnings 23,827 West Indian Tobacco Company Limited Statement of Financial Position As at December 31, 2020 & 2021 2020 2021 ('000s) ('000s) 2020 2021 ('000s) ('000s) ASSETS LIABILITIES & EQUITY Current Assets Current Liabilities Inventories 46,916 50,643 Accounts Payables 117,406 123,547 Accounts Receivables 50,818 126,877 Other Current Liabilities 49,395 45,923 Other Current Assets 4,917 4,917 166,801 169,470 Cash & Equivalents 447,921 368,496 550,572 550,933 Non-current Liabilites 64,560 49,271 Non Current Assets, Net 258,251 268,147 Total Liabilities 231,361 218,741 Equity Share Capital & Other Reserves 102,006 101,056 Retained Eamings 475,456 499,283 Total Equity 577,462 600,339 TOTAL ASSETS 808,823 819,080 TOTAL LIAB. & EQUITY 808,823 819,080 ADDITIONAL NOTES to FINANCIAL STATEMENTS: Depreciation Expense for 2020 = $11,751 ('000) Depreciation Expense for 2021 = $14,968 ('000) Change in Equity = Change in Share Capital & Other Reserves Question 2 As part of your analysis, you are required to investigate WITCO's cash flows. Total: 30 Marks (a) Using the financial statements and additional notes provided, calculate the following for 2021: i. Operating Cash Flow ii. Net Capital Spending iii. Change in Net Working Capital iv. Cash Flow from assets v. Cash Flow to creditors vi. Cash Flow to stockholders (2 Marks) (2 Marks) (3 Marks) (2 Marks) (3 Marks) (3 Marks) (b) Prepare WITCO's Statement of Cash Flow for the year ended December 31, 2021. (12 Marks) (c) What is the purpose and importance of the Cash Flow Statement