The net cash from operative activities shows a negative figure of $7000. This means that no cash has been raised from the operating activities.
The sale for the year is good and the gross profit realised is also high. But the selling & administration expense is quite high as a result the net profit is not high.
The accounts receivable has increased by $6500 the interest expenses is also high. This reduces the profit to$ 5500.The closing stock has
increased by $8500 which requires blocking of the capital to that extent and may effect the cash availability for the firm and also the accounts receivable has increased by $6500
This have reduced the cash sales. Accrued liability has decreased by $16000. it means that they have paid$ 16000 in cash .This has reduced the
operating cash flow negative. As a result of this the company has not paid any dividend this year.