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All values are in USD '$'

Cash Flow from Operating Activities

Cash collection 1816220

Cash payments (purchases and OPEX)

Materials -473150

Labor -660000

Inventory -99680

Rent -25000

Utilities -82000

Advertising -70000

R&D -63250

Insurance -97500

Selling and administration expense -195750Interest -58750

Taxes Paid -39150

Total cash payments -1864230

Net cash provided by operating activities -48010

Cash flows from Investing Activities

Purchase of hard assets (machinery) -945000

Sold Existing Equipment 215500

Total Cash flows from investing -729500

Cash flows from Financing Activities

Long-term Debt 510000

Short-term Debt 200000

Stock buyback -26000

Dividents Paid -10000

Total cash flow from financing 674000

Cash Summary

Net Change in Cash -103510

Cash on January 1, 1992 113000Cash on December 31, 1992 9490

Chemlite Cash Flow Statement

Name : Swarnabha Seth FRA Assignment 1

Roll No: 038epgp11

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All values are in USD '$'

What are the main sources and uses of cash?

Sources of cash

Financing activities that is Short term and Long term debt

Investing activities - activities that is Selling of old equipments

Uses of cash

Operating activties - Raw materials

Operating Activities - Inventory of finished goods

Financing Activities - New investments made

Financing activities - cash dividend Paid

What would you recommend to Alexander?Chemalite is in a situation where cash outflow during the period are higher than the cash inflows

during the same period. As this is a forecasted cashflow, Alexander needs to start worrying about

the cash position towards end of December from now onwards . The uses of cash is on higher side

and mainly due to large investment into inventory.

Chemalite is trying to overcome the situation by arranging long term and short term debt. However,

this might not be

useful since it will result in increase in higher liability and increase in interest payable there of.

Alexander should

adapt a "conservative" approach and cut down on spending in terms of new equipments.As per the

income statement there is a significant increase in revenue so the company is doing well in terms of

generating sales. Now lets see the few ratios: Cash realization ratio = cash generated by

operations/net income = -0.5. The company has to work hard in terms of realizing the cash. Ratio of

cash generated by operations to total debt = -0.8 shows that the company's credit worthiness is not

good and it may not get further loans

Name : Swarnabha Seth FRA Assignment 1

Roll No: 038epgp11