(A) Explain how Unilever Pakistan, Inc. achieved positive cash flows from operating activitiesdespite incurring a net loss for the year.(B) Does the company's financial position appear to be improving or deteriorating? Explain. UNILEVER PAKISTAN, INC.Comparative Income StatementFor the Years Ended December 31, 2019 and 202020192020SalesLess: Cost of Goods SoldGross Profit on Sales$350,000140,000$210,000243,000$500,000200,000$300,000260,000Less: Operating Expenses1,000$(34,000)Less: Loss on Sale of Marketable SecuritiesNet Income (Loss)$40,000UNILEVER PAKISTAN, INC.Comparative Balance SheetsDecember 31,20192020Assets$10,00020,00040,000120,000Cash and Cash EquivalentsMarketable Securities$60,0005,000Accounts ReceivableInventoryPlant and Equipment (Net of Accumulated Depreciation)23,000122,000285,000300,000Totals$490,000$495,000Liabilities & Stockholders' Equity$50,00017,000Accounts PayableAccrued Expenses PayableNote PayableCapital Stock (No Par Value)Retained Earnings$73,00014,000253,00013,50020,000$373,500245,000120,00058,000$490,000Totals2Additional Information for 2020:Cash Dividend Declared and Paid$4,00014,00015,0001,00020,0002,00018,00010,000Marketable Securities Sold for CashCost of Marketable Securities SoldNon-operating Loss as Result of Sale of SecuritiesCost of Plant Assets PurchasedCash Paid for Plant AssetsNote Payable Issued for Balance Due on Plant AssetsPaid Off a Previous Note PayableCash Invested into Business by Owners15,000

Cash Flow from Operating Activities Particulars Amount (Rs) Amount (Rs) Net Income for the year…

A) Explain how Unilever Pakistan, Inc. achieved positive cash flows from operating activities despite incurring a net loss for the year. (B) Does the company's financial position appear to be improving or deteriorating? Explain.

A) Explain how Unilever Pakistan, Inc. achieved positive cash flows from operating activities despite incurring a net loss for the year. (B) Does the company's financial position appear to be improving or deteriorating? Explain.

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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