Candor Cash Flow Exercise Strictly Confidential

Table of Contents
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Notes
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Candor Cash Flow Exercise
Instructions:
1. Calculate the differences on the balance sheet
2. Calculate net CAPEX using the note below the balance sheet
3. Complete the cash flow statement
4. The boxes to complete are in gray

INCOME STATEMENT Year 2 BALANCE SHEET Year 1 Year 2 Difference CASH FLOW STATEMENT
ok ok
Revenue 78,579 Current assets Operating cash flows
Purchases (48,719) Cash 3,746 3,172 (574) Net income 2,584
Gross profit 29,860 Receivables 10,440 10,980 (540) Depreciation 3,199
Expenses (21,632) Inventory 5,189 5,382 (193) Unpaid taxes (43)
Depreciation (3,199) 19,375 19,534 Increase in receivables (540)
Operating profit (EBIT) 5,029 Non-current assets Increase in inventory (193)
Interest expense (1,278) PPE 25,972 26,193 (221) Increase in payables 387
Earnings before tax 3,751 5,394
Tax (1,167) Total assets 45,347 45,727
Net income 2,584 Investing cash flows
Current liabilities Net capex (3,420)
Retained earnings note Payables 9,086 9,473 387
Net income 2,584 Loans 3,124 2,785 (339) Financing cash flows
Dividend (1,397) Unpaid taxation 1,210 1,167 (43) Repayment of short term loans (339)
Retained earnings 1,187 13,420 13,425 Repayment of long term loans (812)
Dividend payment (1,397)
Non-current liabilties (2,548)
Long term borrowing 10,836 10,024 (812)
Change in cash (574)
Shareholders' equity Cash at start of year 3,746
Common stock 9,202 9,202 - Cash at end of year 3,172
Retained earnings 11,889 13,076 1,187
21,091 22,278 Matches balance sheet? ok

Total liabilites and equity 45,347 45,727

PPE note
Opening PPE 25,972
Net capex 3,420
Depreciation (3,199)
Closing PE 26,193