Ebla Tech, is an e-commerce enabler company that provides e-commerce services for various trending products of Beauty, Fashion, Healthcare,F&B, grocerries and many more. Below are the financial data of Elba Tech from 2017 to 2019 in currency unit. Elba Tech's Cash Flow Repory 2019 2018 2017 Cash Flow from operating Activities - 13,421,155,773 500,668,970 144,961,745 Profit for the year (after tax) 3,972,030,182 2,624,211,400 2,084,388,292 Depreciation 272,316,996 188,908,783 106,786,458 Changes in operating assets Decrease (increase) in AR - Non related Party - 5,376,528,126 - 2,680,672,359 - 1,822,904,658 Decrease (increase) in Accounts Receivable - Related Party - 10,001,189,010 - - Decrease (increase) in prepaid Rent 145,936,208 166,380,825 - 312,317,033 Decrease (increase) in prepaid taxes - - 51,855,147 Decrease(Increase) in Inventories - 3,934,661,075 - - Changes in operating liabilities Increase (Decrease) in Tax Payable 198,845,252 175,803,416 - 62,846,461 Increase (decrease) in Accrued Expenses 675,278,077 26,036,905 100,000,000 Increase (decrease) in Accounts Payable 626,815,723 - - Cash Flows from Investing Activities - 153,168,586 - 972,076,000 - 1,463,650,000 Purchase of fixed assets - 153,168,586 - 972,076,000 - 1,463,650,000 Cash Flows from Financing Activities 16,695,168,261 1,005,648,931 - 3,137,194,205 Increase (decrease) of short-term loan from Shareholders - 2,496,089,714 1,005,648,931 - 3,137,194,205 Increase (decrease) of Current Long Term Loans (Bank) 19,191,257,975 - - Increase (decrease) in terms of cash and cash equivalents 3,120,843,902 534,241,901 - 4,455,882,460 Cash and Cash Equivalents at the Beginning of the Year 2,602,365,888 2,068,123,987 6,524,006,447 Cash and Cash Equivalents at the End of the Year 5,723,209,790 2,602,365,888 2,068,123,987 Please analyse the Elba Tech's Liquidity, Solvency, Activity, Profitability, and Stability Based the data above
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Ebla Tech, is an e-commerce enabler company that provides e-commerce services for various trending products of Beauty, Fashion, Healthcare,F&B, grocerries and many more. Below are the financial data of Elba Tech from 2017 to 2019 in currency unit.
Elba Tech's Cash Flow Repory
| 2019 | 2018 | 2017 | |
| Cash Flow from operating Activities | - 13,421,155,773 | 500,668,970 | 144,961,745 |
| Profit for the year (after tax) | 3,972,030,182 | 2,624,211,400 | 2,084,388,292 |
| 272,316,996 | 188,908,783 | 106,786,458 | |
| Changes in operating assets | |||
| Decrease (increase) in AR - Non related Party | - 5,376,528,126 | - 2,680,672,359 | - 1,822,904,658 |
| Decrease (increase) in |
- 10,001,189,010 | - | - |
| Decrease (increase) in prepaid Rent | 145,936,208 | 166,380,825 | - 312,317,033 |
| Decrease (increase) in prepaid taxes | - | - | 51,855,147 |
| Decrease(Increase) in Inventories | - 3,934,661,075 | - | - |
| Changes in operating liabilities | |||
| Increase (Decrease) in Tax Payable | 198,845,252 | 175,803,416 | - 62,846,461 |
| Increase (decrease) in Accrued Expenses | 675,278,077 | 26,036,905 | 100,000,000 |
| Increase (decrease) in Accounts Payable | 626,815,723 | - | - |
| - 153,168,586 | - 972,076,000 | - 1,463,650,000 | |
| Purchase of fixed assets | - 153,168,586 | - 972,076,000 | - 1,463,650,000 |
| Cash Flows from Financing Activities | 16,695,168,261 | 1,005,648,931 | - 3,137,194,205 |
| Increase (decrease) of short-term loan from Shareholders | - 2,496,089,714 | 1,005,648,931 | - 3,137,194,205 |
| Increase (decrease) of Current Long Term Loans (Bank) | 19,191,257,975 | - | - |
| Increase (decrease) in terms of cash and cash equivalents | 3,120,843,902 | 534,241,901 | - 4,455,882,460 |
| Cash and Cash Equivalents at the Beginning of the Year | 2,602,365,888 | 2,068,123,987 | 6,524,006,447 |
| Cash and Cash Equivalents at the End of the Year | 5,723,209,790 | 2,602,365,888 | 2,068,123,987 |
Please analyse the Elba Tech's Liquidity, Solvency, Activity, Profitability, and Stability Based the data above
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