Page 19 - GROUP 3 NAKED HOTEL LIMITED ANNUAL REPORT
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Naked Hotel Limited
Profit Before Taxation
$89,758.00
$78,653.00
2015 2016
Figure 3: Column Graph comparing profit before taxation for current year with prior year.
The increase in cost and expenses can be attributed to the employment of thirteen
additional employee and one contractor who were needed to carry out the duties that emerged
from the introduction of nude weddings, which resulted in incremental revenue and overall
profit. The Management team and Directors expect revenues to increase continuously as we
work hard to improve and innovate services that are sui generis to our organization. Moreover,
the company is looking at various ways in which we can reduce our expenses without depriving
our customers of quality services. The company recognized that to earn we must spend and will
continue to do so in an effective manner.
Analysis of Cashflow
Operating Activities:
Majority of the cash flow for this year was from operating activities because of the
nature of the business. Cash flow generated from operating activities noted a 15.3% ($9,968)
increase for the year.
Financing Activities:
No cashflow was gained from the business financial activities. The financial activities for
the period were attributed to servicing debts by paying of loans and interest associated with
loans. Moreover, the business paid out dividend valued at $11,880. The company seeks to
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