owing: ou understand by "Cash flow from operating activities R 150 ee transactions that improve cash flow but do not increase pr combination of a positive net cash flow from operating act ies. Is this good for the company? Explain.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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QUESTION 5
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5.1 Study the extracts of the Cash Flow Statement of Conlog Limited for the year ended 31 December 2020 and
answer the following:
5.1.1 What do you understand by “Cash flow from operating activities R 150 000"?
5.1.2 Name three transactions that improve cash flow but do not increase profit.
5.1.3 There is a combination of a positive net cash flow from operating activities and a negative cash flow from
investing activities. Is this good for the company? Explain.
LO Export PDF
Edit PDF
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INFORMATION:
Conlog Limited
Extracts of Cash Flow Statement for the year ended 31 December 2020
E Comment
R
Combine Files
Cash flow from operating activities
Cash flow from investing activities
210 000
(330 000)
E0 Organize Pages
Additions to plant and machinery
(330 000)
Cash flow from financing activities
120 000
* Compress PDF
Increase in long term borrowings
120 000
2 Redact
5.2 Calculate the incremental profit/loss after tax.
INFORMATION:
Convert, edit and e-sign PDF
forms & agreements
Lubners Traders is considering extending credit to some customers who may be at risk of defaulting in payment.
Sales will increase by R200 000 if credit is granted to these customers. From the new accounts receivable
generated, 8% is expected to be uncollectable. Additional collection costs will be 3% of sales, and the production
and selling costs will be 65% of sales. Taxation is 28%.
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2021/09/11
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Transcribed Image Text:A PGDBM PH JAN 2021.pdf - Adobe Acrobat Reader DC (32-bit) File Edit View Sign Window Help Home Tools PGDBM PH JAN 20. x Sign In 92 / 105 100% QUESTION 5 Search 'OCR' 5.1 Study the extracts of the Cash Flow Statement of Conlog Limited for the year ended 31 December 2020 and answer the following: 5.1.1 What do you understand by “Cash flow from operating activities R 150 000"? 5.1.2 Name three transactions that improve cash flow but do not increase profit. 5.1.3 There is a combination of a positive net cash flow from operating activities and a negative cash flow from investing activities. Is this good for the company? Explain. LO Export PDF Edit PDF Create PDF INFORMATION: Conlog Limited Extracts of Cash Flow Statement for the year ended 31 December 2020 E Comment R Combine Files Cash flow from operating activities Cash flow from investing activities 210 000 (330 000) E0 Organize Pages Additions to plant and machinery (330 000) Cash flow from financing activities 120 000 * Compress PDF Increase in long term borrowings 120 000 2 Redact 5.2 Calculate the incremental profit/loss after tax. INFORMATION: Convert, edit and e-sign PDF forms & agreements Lubners Traders is considering extending credit to some customers who may be at risk of defaulting in payment. Sales will increase by R200 000 if credit is granted to these customers. From the new accounts receivable generated, 8% is expected to be uncollectable. Additional collection costs will be 3% of sales, and the production and selling costs will be 65% of sales. Taxation is 28%. Free 7-Day Trial 22:10 O Type here to search ENG 2021/09/11 命 星 的
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