3. Assignment Task

Splash plc

Cash flows from operating activities RO

Operating loss. (3078(

Depreciation

1334.

Working capital changes (net)

838

Cash outflow from operations

(906)

Cash flows from investing activities

Purchase of non-current assets

(1202)

Net cash outflow from investing

activities

(1202)

Cash flows from financing activities

Issue of ordinary shares

6042

Loan repayment

(1216)

Net cash inflow from financing

activities

4826

Net increase in cash

1,359

Cash at beginning of period

487

Cash at end of period

1,846

1.For 2013, explain briefly where the companys cash flow came from, how it was spent, and how the overall cash position has improved in a year when it made a loss. Discuss whether such a cash flow is healthy for a company such as Splash plc

2.What is bank overdraft? How to deal with overdrafts in the Bank Reconciliation Statement?