(A) Explain how Unilever Pakistan, Inc. achieved positive cash flows from operating activities despite incurring a net loss for the year. (B) Does the company's financial position appear to be improving or deteriorating? Explain.
Extracted text: UNILEVER PAKISTAN, INC. Comparative Income Statement For the Years Ended December 31, 2019 and 2020 2019 2020 Sales Less: Cost of Goods Sold Gross Profit on Sales $350,000 140,000 $210,000 243,000 $500,000 200,000 $300,000 260,000 Less: Operating Expenses 1,000 $(34,000) Less: Loss on Sale of Marketable Securities Net Income (Loss) $40,000 UNILEVER PAKISTAN, INC. Comparative Balance Sheets December 31, 2019 2020 Assets $10,000 20,000 40,000 120,000 Cash and Cash Equivalents Marketable Securities $60,000 5,000 Accounts Receivable Inventory Plant and Equipment (Net of Accumulated Depreciation) 23,000 122,000 285,000 300,000 Totals $490,000 $495,000 Liabilities & Stockholders' Equity $50,000 17,000 Accounts Payable Accrued Expenses Payable Note Payable Capital Stock (No Par Value) Retained Earnings $73,000 14,000 253,000 13,500 20,000 $373,500 245,000 120,000 58,000 $490,000 Totals 2 Additional Information for 2020: Cash Dividend Declared and Paid $4,000 14,000 15,000 1,000 20,000 2,000 18,000 10,000 Marketable Securities Sold for Cash Cost of Marketable Securities Sold Non-operating Loss as Result of Sale of Securities Cost of Plant Assets Purchased Cash Paid for Plant Assets Note Payable Issued for Balance Due on Plant Assets Paid Off a Previous Note Payable Cash Invested into Business by Owners 15,000