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Transcription of this question: Piper Industrial (Pl)Piper Industrial (PO manufactures pipe. The company is highly profitable and its corporatetax rate is 20%. Pl is forecasting major capital expenditure for 2019.Table 1: Selected forecast financial information for the year ending 31 December 2019Cost of goods soldExpensesGross profitInterestNet profit after interest and taxNet profit before interest and taxNet profit before taxSales revenueTax$15 000000$4 700 000x$1 000 000$3440000$5300000$4300000$25000000Table 2: Annual cash flow forecast for the year ending 31 December 2019Receipts from debtorsTotal receiptsPayments to creditorsPayments for expensesPayments to banks for debtCapital expenditureTotal paymentsNet cash flowOpening balanceClosing balance$24 000 000$24 000 000$14 000000$4 600 000$1 200 000$2700$22500000z$3700000$5200000(Question 1 continued)(a)(b)(c)(d)(e)Define the term capital expenditure.Using Table 1, calculate for Pl:(i) gross profit (X);(ii) tax (Y).Using Table 1 and your calculations in (b)(i) and (ii), construct a profit and loss accountfor Pl.Using Table 2, calculate the net cash flow (Z) for P/ for 2019 (show all your working).Explain the difference between profit and cash flow.[2][2][2][2]

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