Portas Inc. Cashflow Statement As at 12-december-2012 ( In thousands of Dollars ) Cashflow from Operating activities : Net income Adjustments to reconcile net income to cash flow from operating expenses : Fixed Assets Depreciation Loss on Disposal of non current investement Changes in Operating assets and Liabilities Increase in accounts receivables (100 -180) Increase in Inventories ( 200-240) Increase in Account Payable ( 100-130) Increase Taxes Payable ( 20-30) Total adjustments Net cash Flow provided by Operating Actvities Cashflow from Investing activities : sale (maturity) of investement securities Net Cashflow used by investing Activities Cash Flow From Financing Activities Increase in non current Note payable (320-400) Proceeds from the issuance of common stock (500-600) Payment of dividend Net cash provided by financing activities Net increase in cash during the year (120-540) Cash balance, January 1, current year Cash balance, December 31, current year
Quality of Income Ratio : Quality of income ratio = Cashflow from operation Net income = 160 /160 = 1 Having a quality ratio of 1 which indicate the amount of cash provided by operating activities is greater than the amount of ne Portas Inc has a sound cash flow based on the company net cash flow which is $160,000. Although portas inc reported a low nQuality income refers to the amount of earnings that come from the business operations itself.
160 40 40 ($80) ($40) $30 $10 $160 100 100 80 100 ($20) 160 420 120 540
come it generate during the period. Portas inc has a ratio of 1.0 whic rofit compare to the industry average, the company is still profitable
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