Question 22
Based on the below financial statements of ABC limited, answer the given subquestions:
Balance Sheet
| Assets | 2023 | 2022 |
|---|---|---|
| Current Assets | ||
| Cash and Cash Equivalents | 7,000 | 5,000 |
| Accounts Receivable | 3,000 | 2,500 |
| Inventory | 4,000 | 3,000 |
| Total Current Assets | 14,000 | 10,500 |
| Non-Current Assets | ||
| Property, Plant, Equipment | 20,000 | 16,000 |
| Less: Accumulated Depreciation | -6,000 | -5,000 |
| Net Non-Current Assets | 14,000 | 11,000 |
| Total Assets | 28,000 | 21,500 |
| Liabilities & Equity | 2023 | 2022 |
| Current Liabilities | ||
| Accounts Payable | 2,500 | 2,000 |
| Short-term Borrowings | 1,500 | 1,000 |
| Total Current Liabilities | 4,000 | 3,000 |
| Non-Current Liabilities | ||
| Long-term Debt | 8,000 | 5,000 |
| Total Liabilities | 12,000 | 8,000 |
| Equity | ||
| Common Stock | 7,000 | 7,000 |
| Retained Earnings | 9,000 | 6,500 |
| Total Equity | 16,000 | 13,500 |
| Total Liabilities & Equity | 28,000 | 21,500 |
Income Statement (for the year ended December 31, 2023)
| Income Statement | 2023 |
|---|---|
| Revenue | 30,000 |
| Cost of Goods Sold (COGS) | -18,000 |
| Gross Profit | 12,000 |
| Operating Expenses | -3,000 |
| Depreciation Expense | -1,000 |
| Operating Profit | 8,000 |
| Interest Expense | -600 |
| Profit Before Tax | 7,400 |
| Income Tax (30%) | -2,220 |
| Net Income | 5,180 |
What is the cash flow from investing activities