Discuss memorandum to the azmi and azzah evaluating

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Reference no: EM132545445

Azmi and Azzah are completing their second year operating Mountain Berhad, a resort. Mountain Berhad report a net loss of RM10,000 for its second year, which includes an RM85,000loss from fire. This past year also involved major purchase of property, plant and equipment for renovation and expansion., yielding a year-end total asset amount of RM800,000. Mountain Berhad's net cash outflow for its second year is RM5,000: a summarized version of its statement of cash flows follows:

Net cash flow from operating activities : RM 295,000

Net cash flow used in investing activities : RM (310,000)

Net cash flow from financing activities : RM 10,000

Required:

Question 1: Discuss memorandum to the Azmi and Azzah evaluating Mountain Berhad's current performance and assessing its future. Give special emphasis to cash flow data and their interpretation.

Reference no: EM132545445

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