Take a look at this new companies projected cash flow statement. Analyze and describe the health...

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Finance

Take a look at this new companies projected cash flow statement.Analyze and describe the health of the company.
2020
2021
2022
Net Cash Flow from Operations
Net Profit
$72,379
$88,903
$481,724
Depreciation & Amortization
$96,000
$96,000
Change in Accounts Receivable
($54,538)
($29,542)
($54,536)
Change in Inventory
Change in Accounts Payable
$11,437
$45,802
$31,380
Change in Income Tax Payable
$18,095
($12,539)
$24,551
Change in Sales Tax Payable
$11,537
$7,866
$12,585
Change in Prepaid Revenue
Net Cash Flow from Operations
$58,911
$196,490
$591,704
Investing & Financing
Assets Purchased or Sold
($96,000)
($96,000)
Investments Received
$514,650
Change in Long-Term Debt
$20,000
($20,000)
$0
Change in Short-Term Debt
$0
$0
$0
Dividends & Distributions
Net Cash Flow from Investing &Financing
$534,650
($116,000)
($96,000)
Cash at Beginning of Period
$0
$593,561
$674,051
Net Change in Cash
$593,561
$80,490
$495,704
Cash at End of Period
$593,561
$674,051
$1,169,755

Answer & Explanation Solved by verified expert

3.6 Ratings (580 Votes)

Cash flow is an important statement of accounts which describes the overall performance of the company The statement records all the cash outflows and inflows of the company It is always advisable for a firm to have sufficient cash to make it profile liquid Some of the important factors to look in to it is how much the company is actually generating from See Answer

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Transcribed Image Text

Take a look at this new companies projected cash flow statement.Analyze and describe the health of the company.202020212022Net Cash Flow from OperationsNet Profit$72,379$88,903$481,724Depreciation & Amortization$96,000$96,000Change in Accounts Receivable($54,538)($29,542)($54,536)Change in InventoryChange in Accounts Payable$11,437$45,802$31,380Change in Income Tax Payable$18,095($12,539)$24,551Change in Sales Tax Payable$11,537$7,866$12,585Change in Prepaid RevenueNet Cash Flow from Operations$58,911$196,490$591,704Investing & FinancingAssets Purchased or Sold($96,000)($96,000)Investments Received$514,650Change in Long-Term Debt$20,000($20,000)$0Change in Short-Term Debt$0$0$0Dividends & DistributionsNet Cash Flow from Investing &Financing$534,650($116,000)($96,000)Cash at Beginning of Period$0$593,561$674,051Net Change in Cash$593,561$80,490$495,704Cash at End of Period$593,561$674,051$1,169,755

	2020	2021	2022
Net Cash Flow from Operations
Net Profit	$72,379	$88,903	$481,724
Depreciation & Amortization		$96,000	$96,000
Change in Accounts Receivable	($54,538)	($29,542)	($54,536)
Change in Inventory
Change in Accounts Payable	$11,437	$45,802	$31,380
Change in Income Tax Payable	$18,095	($12,539)	$24,551
Change in Sales Tax Payable	$11,537	$7,866	$12,585
Change in Prepaid Revenue
Net Cash Flow from Operations	$58,911	$196,490	$591,704
Investing & Financing
Assets Purchased or Sold		($96,000)	($96,000)
Investments Received	$514,650
Change in Long-Term Debt	$20,000	($20,000)	$0
Change in Short-Term Debt	$0	$0	$0
Dividends & Distributions
Net Cash Flow from Investing &Financing	$534,650	($116,000)	($96,000)
Cash at Beginning of Period	$0	$593,561	$674,051
Net Change in Cash	$593,561	$80,490	$495,704
Cash at End of Period	$593,561	$674,051	$1,169,755