The CFO of AGH sp. z o.o. is developing a financial plan for the company for...

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The CFO of AGH sp. z o.o. is developing a financial plan for the company for the year 2013. They would like to check if the financial strategy, planned according to adopted assumptions, financially viable. According to their calculations, the forecasted financial date for the year 2013 as follows (all data given in thousands): a. Revenues = 2,000 b. Operating costs (excluding depreciation) = 1,400 c. Depreciation = 100 d. Other operating costs = 100 e. Financial costs = 50 f. Opening receivables balance = 100, final balance = 200 g. Opening stock balance = 300, final balance = 500 h. Opening account payables balance = 300, final account payables balance = 500 i. Opening cash balance = 200 j. Credit payment = 100 k. Proceeds from new issue of shares = 100 I. Investment expenditure = 300 We also know that the company pays a 19% income tax. a) Based on the given information, please develop a cash flow statement and decide if the strategy planned for the nearest year is financially viable. (17 marks) b) Please interpret the obtained value of the operating cash flow (i.e. what the obtained value tells us). (3 marks) The CFO of AGH sp. z o.o. is developing a financial plan for the company for the year 2013. They would like to check if the financial strategy, planned according to adopted assumptions, financially viable. According to their calculations, the forecasted financial date for the year 2013 as follows (all data given in thousands): a. Revenues = 2,000 b. Operating costs (excluding depreciation) = 1,400 c. Depreciation = 100 d. Other operating costs = 100 e. Financial costs = 50 f. Opening receivables balance = 100, final balance = 200 g. Opening stock balance = 300, final balance = 500 h. Opening account payables balance = 300, final account payables balance = 500 i. Opening cash balance = 200 j. Credit payment = 100 k. Proceeds from new issue of shares = 100 I. Investment expenditure = 300 We also know that the company pays a 19% income tax. a) Based on the given information, please develop a cash flow statement and decide if the strategy planned for the nearest year is financially viable. (17 marks) b) Please interpret the obtained value of the operating cash flow (i.e. what the obtained value tells us). (3 marks)

Answer rating: 100% (QA)

a Calculations Operating Activities Cash Inflows Revenues 2000 Cash Outflows Operating costs excluding depreciation 1400 Other operating costs 100 Inc... View the full answer