Sedibeng Company (Pty) Ltd Extracted the following information from its income statement and Balance sheet for the year 2019 INCOME STATEMENT FOR 2012 Sales Revenue 53000 Expenses 57000 Salaries 41 000 depriciation 7000 Armotisation expenses 200 Other expenses 9700 Net loss R(4900) PARTIAL BALANCE SHEET OF SEDIBENG (PTY) LTD 2012 2011 Accounts Receivable R8000 R15000 Salaries Payable 15000 1000 Other Accrued Liabilities 1000 5100 In addition, Sedibeng bought a small machine for R5000 Required: 1. Present the operating activities section of the statement of cash flows for Sedibeng Company (Pty) Ltd using the indirect method 2. what were the major reasons that Sedibeng was able to report a net loss but positive cashflows from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?
Sedibeng Company (Pty) Ltd Extracted the following information from its income statement and Balance sheet for the year 2019
INCOME STATEMENT FOR 2012
Sales Revenue 53000
Expenses 57000
Salaries 41 000
depriciation 7000
Armotisation expenses 200
Other expenses 9700
Net loss R(4900)
PARTIAL BALANCE SHEET OF SEDIBENG (PTY) LTD
2012 2011
Salaries Payable 15000 1000
Other Accrued Liabilities 1000 5100
In addition, Sedibeng bought a small machine for R5000
Required:
1. Present the operating activities section of the statement of cash flows for Sedibeng Company (Pty) Ltd using the indirect method
2. what were the major reasons that Sedibeng was able to report a net loss but positive cashflows from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?
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