You are given the Income Statement (KA) and an excerpt from the Balance Sheet of x SA Balance sheet 2020 2019 Non current assets Tangible assets 240 000 190 000 Long term investments 20 000 14 000 Current assets Inventory 60 000 68 000 Clients 120 000 48 000 Checks receivable 82 000 93 000 Cash and cash equivalents 198 000 205 000 Short term obligations Suppliers 195 000 205 000 Other short term obligations 158 000 148 000 Income statement 31 12 2020 Sales 790 000 Cost of goods sold (230 000) Gross profits 560 000 Salary expenses (115 000) Various expenses (270 000) Depretiation (30 000) Operating results 145 000 Minus loss of asset sale (6 000) Profits before taxes 139 000 Minus taxes (41 700) Net profits 97 300 You are also given the following additional information for usage data 1 purchase of tangible assets with cash of 130,000 2 receipts 44,000 from the sale of fixed assets with a book value of 50,000 3 payment of dividends 58,300 4 income from the issuance of common shares with cash of 16,000 5 issuance of a long term loan against cash of 47,000 Required prepare the situation of the company's cash flows for the year 2020 based on the indirect method ,evaluate the company's cash flows In the evaluation, mention all three categories of cash flows and justify their evaluation

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Posted on Sep 12, 2024

You are given the Income Statement (KA) and an excerpt from the Balance Sheet of x SA. Balance sheet 2020 2019 Non-current assets Tangible assets

You are given the Income Statement (KA) and an excerpt from the Balance Sheet of x SA.

Balance sheet	2020	2019
Non-current assets
Tangible assets	240.000	190.000
Long term investments	20.000	14.000
Current assets
Inventory	60.000	68.000
Clients	120.000	48.000
Checks receivable	82.000	93.000
Cash and cash equivalents	198.000	205.000
Short term obligations
Suppliers	195.000	205.000
Other short term obligations	158.000	148.000

Income statement 31/12/2020
Sales		790.000
Cost of goods sold	(230.000)
Gross profits		560.000
Salary expenses	(115.000)
Various expenses	(270.000)
Depretiation	(30.000)
Operating results		145.000
Minus loss of asset sale		(6.000)
Profits before taxes		139.000
Minus taxes		(41.700)
Net profits		97.300

You are also given the following additional information for usage data: 1. purchase of tangible assets with cash of 130,000. 2. receipts 44,000 from the sale of fixed assets with a book value of 50,000 3. payment of dividends 58,300 4. income from the issuance of common shares with cash of 16,000 5. issuance of a long-term loan against cash of 47,000 Required: prepare the situation of the company's cash flows for the year 2020 based on the indirect method ,evaluate the company's cash flows. In the evaluation, mention all three categories of cash flows and justify their evaluation.