(a) Purpose a Statement of Cash Flows for Arte's Gallery for the year ended 30th June 2012 using the preformed provided. Show all calculations.
(b) Below is the summarized Statements Cash Flow for two other sole traders. Comment on which one has a healthier cash flow situation and justifies your answer by explaining the importance of each of the three kinds of cash flows for each business:
Bill's Ben's
Cash flow from Operating Activities 12 000 6 000
Cash flow from Investing Activities (18 000) 8 000
Cash flow from Financing Activities 4 000 (12 000)
Net increase / (decrease) in cash held (2 000) 2 000
Cash at the starting of the year 5 000 5 000
Cash at the end of the year 3 000 7 000