Marlot Limited reported the following information on cash flow for the year 2012. | |||||||||||||||||
$ | |||||||||||||||||
Cash flows from operations | 4,00,000 | ||||||||||||||||
Cash flows from investing activities | 1,00,000 | ||||||||||||||||
Cash flows from financing activities | 3,01,000 | ||||||||||||||||
Net cash flows | 1000 | ||||||||||||||||
Opening cash balance | 1,60,000 | ||||||||||||||||
Ending cash balance | 1,61,000 | ||||||||||||||||
A. Does Marlot Limited appear to be expanding or contracting its operations? | |||||||||||||||||
B. Describe the activities that could explain the use of cash flows for financing activities? | |||||||||||||||||
C. Using only the cash flow information presented, make an assessment of the condition of Marlot Limited. Is it growing. Mature/stable, or declining? State reasons for your answer including any assumptions you have made. |
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