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The following information relates to Ezekiel Limited for the year ended 30 June 2020.

Profit and loss account for the year to 30 June 2020

	K	K
Gross profit		253,000
Administrative expenses	83,600
Loss on sale of vehicle	3,300
Increase in provision for doubtful debts	1,100
Depreciation	38,500	126,500
Net profit		126,500
Taxation		71,500
		55,000
Dividends		27,500
Retained profit from the year		27,500

Statement of Financial Position as at 30 June 2020

	2019		2020
	K	K	K	K
Non-Current Assets
Motor Vehicle at Cost		150,000		200,000
Less depreciation		75,000		100,000
		75,000		100,000
Current Assets
Inventory		60,000		50,000
Trade receivables	80,000		100,000
Less: Provision for bad and doubtful debts	4,000	76,000	5,000	95,000
Cash		6,000		8,000
		217,000		253,000
Current Liabilities
Trade payables	60,000		53,000
Taxation	52,000		65,000
Proposed dividend	20,000	132,000	25,000	143,000
Capital and Reserves
Ordinary share capital	75,000		75,000
Profit and Loss account	10,000	85,000	35,000	110,000
		217,000		252,000

Additional information:

1. The company purchased some new vehicles during 2020 for K75, 000.

2. During 2020 the company also sold a vehicle for K12, 000 in cash. The vehicle had originally cost K25,000 and K10, 000 had been set aside for depreciation.

Required:

1. Prepare a statement of cash flows for Ezekiel Limited for the year ended 30 June 2020.
2. Outline what it tells the managers of Ezekiel Limited.

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