Answer Happy

West Indian Tobacco Company Limited Income Statements For the years ended December 31, 2020 & 2021 2020 ('000s) Sales Cost of Sales Gross Profit Distribution Costs Aumm Administrative Expenses Other Operating Expenses Interest Income Other Income/(Expenses) Earnings before Interest & Taxes Interes Interest Expense Taxable Income Taxation Net Income Dividends Paid Add to Retained Eamings 899,917 (211.020) 688,897 (10,905) (75,537) (15,241) 1,210 9.552 597,976 17 976 (2.40) (348) 597,628 (178,055) 419,573 West Indian Tobacco Company Limited Statement of Financial Position As at December 31, 2020 & 2021 2020 2021 ('000s) ('000s) ASSETS Current Assets Inventories 46,916 50,643 Accounts Receivables 50,818 126,877 4,917 4,917 Other Current Assets Cash & Equivalents 447,921 368,496 550,572 550.933 Non Current Assets, Net 258.251 268,147 TOTAL ASSETS 808,823 819,080 ADDITIONAL NOTES to FINANCIAL STATEMENTS: ➤ Depreciation Expense for 2020 = $11,751 ('000) ➤ Depreciation Expense for 2021 = $14,968 ('000) ➤ Change in Equity = Change in Share Capital & Other Reserves 2021 ('000s) 852,251 (207,461) 644,790 (9,931) (73,629) (23,838) 116 9,314 546,822 (206) (296) 546,526 (158,183) 388,343 364,516 23,827 LIABILITIES & EQUITY Current Liabilities Accounts Payables Other Current Liabilities Non-current Liabilites Total Liabilities Equity Share Capital & Other Reserves Retained Earnings Total Equity TOTAL LIAB. & EQUITY 2020 ('000s) 117,406 49,395 166,801 64.560 231,361 102,006 475,456 577,462 808,823 2021 ('000s) 123,547 45,923 169,470 49,271 218,741 101,056 499,283 600,339 819,080 Question 2 Total: 30 Marks As part of your analysis, you are required to investigate WITCO's cash flows. (a) Using the financial statements and additional notes provided, calculate the following for 2021: i. Operating Cash Flow (2 Marks) ii. Net Capital Spending (2 Marks) iii. Change in Net Working Capital (3 Marks) iv. Cash Flow from assets (2 Marks) v. Cash Flow to creditors (3 Marks) (3 Marks) vi. Cash Flow to stockholders (b) Prepare WITCO's Statement of Cash Flow for the year ended December 31, 2021. (12 Marks) (c) What is the purpose and importance of the Cash Flow Statement? (3 Marks)