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Q: able below presents the income statement and balance sheet of AliTech Berhad. The company has increased its sales from RM350,000 in 2018 to RM450,000 in year 2019. Encik Sam, chief executive officer (CEO) and founder of the firm has the concern that the cash account as the firms liquid assets declined substantially between 2018 and 2019.

ALITECH CORPORATION
Annual Income Statements (in RM Thousands)
2018	2019

Net sales	350			450
Less: Cost of goods sold	225			270
Gross profit	125			180
Less: Operating expenses	46			46
Less: Depreciation	25			30
Less: Interest	4			4
Income before taxes	50			100
Less: Income taxes	20			30
Net income	30			70
Cash dividends	17			20
Balance Sheets as of December 31 (in RM Thousands)
2018			2019
Cash		39			16
Accounts receivable		37			80
Inventories		151			204
Total current assets		227			300
Gross fixed assets		200			290
Less accumulated depreciation		-95			-125
Net fixed assets		105			165
Total assets		332			465
Accounts payable		30			45
Bank loan		20			27
Accrued liabilities		10			23
Total current liabilities		60			95
Long-term debt		15			15
Common equity		85			120
Retained earnings		172			235
Total liabilities and equity		332			465

(i) Construct a statement of cash flows for 2019 for AliTech Berhad.

(ii) Discuss both cash inflows and outflows for AliTech between the two years.

(iii) Apply your calculations from (i) for cash flows from operating and investing activities, calculate whether AliTech was building or burning cash in 2019.

(iv) Convert the 2019 annual cash build or cash burn to a monthly rate. If cash flow activities relating to operations and investing for 2019 continue into 2020, if Alitech is burning cash, how long it will be before the company is running out of cash. OR if AliTech is building cash, how many months of cash is available? (Assume there is no changes in cash flows from financing activities in 2020)

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