Please donot provide solution in image format and provide solution in step by step format and fast solution. You have the following data available for Al Maha Company, which is the income statement at the end of 2022and the statement of financial position (balance sheet) at the end of 2021 and 2022. You are required to:1- Preparing a statement of retained earnings at the end of 20222- A list of cash inflows and outflows at the end of 20223 - A statement of cash flows according to operating, investment and financing activity at the end of 20224 - Free Cash Flow Calculation (from Assets)Free cash flow = operating cash flow - change in net fixed assets - change in net working capital (current assets - current liabilities)Balance sheet at the end of 2021 and 2022 20222021Cash2400021000Receivables4500039000Inventory3000027000Net Fixed Assets = Total - Accumulated Depreciation = (40,000 - 18,000 =) 20212000022000( 42000 - 22000 = ) 2022 Total assets119000109000Payables2500030000Note Payables5000040000Dues10002000Long term debt100008000Ordinary shares10001000Issuance premium40004000Retained earnings2800024000Total Liabilities & Equities119000109000 Income statement at the end of 20222022 sales150,000 Cost of goods sold117,500 Gross profit32,500 Selling expenses = 4,5004,500 Administrative expenses = 40004,000 depreciation4,000 Operating profit (earnings before interest and taxes)20,000 Interest2,500 profit before taxes17,500 tax 40%7,000 Net profit after tax10,500

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Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 12SEP

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Please donot provide solution in image format and provide solution in step by step format and fast solution. You have the following data available for Al Maha Company, which is the income statement at the end of 2022
and the statement of financial position (balance sheet) at the end of 2021 and 2022. You are required to:
1- Preparing a statement of retained earnings at the end of 2022
2- A list of cash inflows and outflows at the end of 2022
3 - A statement of cash flows according to operating, investment and financing activity at the end of 2022
4 - Free Cash Flow Calculation (from Assets)

Free cash flow = operating cash flow - change in net fixed assets - change in net working capital (current assets - current liabilities)

Balance sheet at the end of 2021 and 2022
	2022	2021
Cash	24000	21000
Receivables	45000	39000
Inventory	30000	27000
Net Fixed Assets = Total - Accumulated Depreciation = (40,000 - 18,000 =) 2021	20000	22000
( 42000 - 22000 = ) 2022
Total assets	119000	109000
Payables	25000	30000
Note Payables	50000	40000
Dues	1000	2000
Long term debt	10000	8000
Ordinary shares	1000	1000
Issuance premium	4000	4000
Retained earnings	28000	24000
Total Liabilities & Equities	119000	109000


Income statement at the end of 2022	2022
sales	150,000
Cost of goods sold	117,500
Gross profit	32,500
Selling expenses = 4,500	4,500
Administrative expenses = 4000	4,000
depreciation	4,000
Operating profit (earnings before interest and taxes)	20,000
Interest	2,500
profit before taxes	17,500
tax 40%	7,000
Net profit after tax	10,500

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