Cash flow from operating activities amounts to 3,800,000.
Explanation: Cash generated from sales is (A) 21,000,000. Cash expenses to suppliers (B) total (15,200,000). Interest paid is (1,000,000), and income taxes paid also amount to (1,000,000). Thus, cash flow from operational activities equals 3,800,000. (A) reflects sales and accounts receivable totaling 3,000,000 + 21,000,000 - 2,500,000, resulting in 21,500,000. (B) involves computations for purchases based on COGS and inventory assessments: purchases arrive at 15,000,000 + 3,000,000 - 2,400,000 equating to 15,600,000. Therefore, we solve for suppliers' payments, yielding 1,000,000 + 15,600,000 - 1,400,000 = 15,200,000.
Using cash is counterproductive and disadvantageous because relying solely on it leads to a lack of credit history, making it difficult for banks to assess your reliability for loan repayment.
To calculate the percentage return, use the formula (total profit / total investment) * 100, which gives us
( 100 / 1000 ) * 100 = 10%
