Writ a memorandum giving Tana's managers your assessment of 2012 operations and outlook for future.

Top management of Tana Pty Ltd are reviewing company performance for 2012. The income statement reports a 25% increase in net income over 2011. However, most of the increase resulted from an exceptional gain from a lawsuit Tana has last won against a competitor. The balance sheet shows a large increase in receivables. The cash flows statement, in summarised form reports the following:

Net cash used for operating activities = (R50 000)
Net cash provided by investing activities = R 30 000
Net cash provided by financing activities. = R 25 000
Increase in cash and cash equivalents during 2012 = R 5 000

Requirement:
Write a memorandum giving Tana's managers your assessment of 2012 operations and your outlook for the future. Focus on the information content of the cash flows data.
Bheki_123
Asked Jan 20, 2015

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