Assignment: Cash Flow Analysis
Your group will perform a cash flow analysis and answer the following assignment's questions.
Question 1.
Discuss in details the purposes of the statement of cash flows?
Question 2.
Describe the concept of cash used in the preparation of the statement of cash flows - Cash and Cash equivalent?
Question 3.
Explain why cash flows from operating activities are important to users of a statement of cash Flow?
Question 4.
Why does the cash on hand balance as at the end of the financial year in the statement of cash flow not concur with the cash balance shown in current assets in the statement of financial position?
Question 5.
Distinguish between cash flows from operating activities, investing activities and financing activities. According to the relevant standard, identify three separate cash flows where the accounting standard appears to allow classification under more than one activity. Explain why such choice of classification is allowed?
Question 6.
Describe the direct method of preparing the cash flows from operating activities in a statement of cash flows. Contrast this with the indirect method?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.