QuestionObserve the following statement:STATEMENT OF CASH FLOW FOR "COUCH POTATO TECHNOLOGIES P/L"For the year ending June 30 20112010 2011$000 $000Receipts from customers (sales)Payments for purchasesPayments to employeesPurchase of assets350180506080801020Payments for operating expenses1015Additional Information:Industry Average Efficiency : 20%Net profit in 2010 : $21 000a) Define the term working capital.b) Comment on the cash flow of Couch Potato Technologies P/L in 2010.c) Calculate and comment on the efficiency of Couch Potato Technologies P/Ld) Calculate and comment on the net profit of Couch Potato Technologies P/L.e) Recommend TWO strategies that can be used to manage the working capital ofCouch Potato Technologies P/L.

a] Definition of working capital :- Working…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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