Page 20 - GROUP 3 NAKED HOTEL LIMITED ANNUAL REPORT

increase the cashflow generated from financing activities by increasing the authorized share
capital.

Investing Activities:

The business recorded an inflow of $239 which resulted from the sale of equipment.
However, overall investing activities recorded an outflow of $30,571 because $30000 was
invested in a 150 days Fixed Deposit and $810 was used to purchase equipment. Even though
these activities decreased cashflow in the short-run, we look forward to the gains, and benefit in
the long run.

Naked Hotel Limited

Comparison of Cashflow

$75,228

$65,260

$-
OPERATING ACTIVITIES FINANCING ACTIVITES INVESTING ACTIVITIES

-$49,752

-$51,880 -$30,571

2015 2016

Figure 4: Line graph comparing current year cashflow with prior year cash flow.

According to Figure 4 above the business generated an increase in operating activities and
decline in both investing and financing activities. As a result, the balance of cash and cash
equivalent decreased by $7,223 ending at a balance of $73,594.

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