CASH FLOW STATEMENt

COMMON-SIZE INCOME STATEMENT

(in thousands)

	2012-13	% to Total Sales	2013-14	% to Total Sales	2014-15	% to Total Sales
Sales
Cash	200	10%	480	10%	800	10%
Credit	1800	90%	4320	90%	7200	90%
Total sales	2000	100%	4800	100%	8000	100%
COGS	1240	62%	2832	59%	4800	60%
Gross profit	760	38%	1968	41%	3200	40%
Operating expense
General, Administration, and Selling expenses	80	4%	450	9.38%	1000	12.5%
Depreciation	100	5%	400	8.33%	660	8.25%
Interest expense	60	3%	158	3.29%	340	4.25%
Profit before tax (PBT)	520	26%	960	20%	1200	15%
Tax at 30%	156	7.80%	288	6%	360	4.5%
Profit after tax (PAT)	364	18.2%	672	14%	840	10.50%

QUESTION-Could you help me understand the relationship between the operating, investing, and financing cash flows? What does this mean for Anandam going forward?

Given this, and the rest of your analysis, I see youve provided me with some improvements. If there was one key recommendation we should act on immediately, what is it and why?

CASH FLOW STATEMENT

(in thousands)

	2012-13	2013-14	2014-15
CASH FLOW FROM OPERATING ACTIVITIES
Net income	364	672	840
ADD: Non-operating expenses (Depreciation)	100	400	660
Adjusted net income	464	1072	1500
CHANGES IN WORKING CAPITAL
Accounts Receivable (300-1500) (1500-1200)		(1200)	(600)
Inventories (320-1500) (1500-2250)		(1180)	(750)
Current Liabilities (1728-260) (2780-1728)		1468	1052
Cash generated from Operating Activities (1)		160	1202
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Assets (2000-3000) (3000-5860)		(1000)	(2860)
Cash used in Investing Activities (2)		(1000)	(2860)
CASH FLOW FROM FINANCING ACTIVITIES
Borrowings (1236-736) (2500-1236)		500	1264
Issue of shares (1600-1200) (2000-1600)		400	400
Cash generated from Financing Activities (3)		900	1664
NET CASH GENERATED (1+2+3)		60	6
Beginning Cash Balance		40	100
Ending Cash Balance		100	106