Reviewing company performance

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Reference no: EM131953107

Top managers of Bayside Inns are reviewing company performance for 2016. The income statement reports a 25% increase in net income over 2015.However, most of the increase resulted from an exceptional gain from a lawsuit Bayside Inns had last won against a competitor. The statement of financial position (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 R30 000. Write a memorandum giving Bayside Inns's Managers your assessment of 2016 operations and your outlook for the future focus on the information content of the cash flows data.

Reference no: EM131953107

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