The published accounts of Kranak plc included the following information.

Notes to the accounts: 

1. Schedule of non-current assets at 31 March 2015

Proceeds from the sale of equipment amounted to $6000. 

2. Dividends paid 

Dividend payments totalled $315 000 during the year ended 31 March 2015. 

A shareholder is not clear why a cash flow statement is included in the published accounts, and is not sure what value it has when assessing the company's performance. 

a. State one reason why the cash flow statement has been included in the company's published accounts, 

b. Prepare a statement to show the reconciliation of profit from operations to net cash flow from operating activities for the year ended 31 March 2015. 

c. Prepare an extract from the statement of cash flows for the year ended 31 March 2015 showing details of investing activities. d Discuss the value of a statement of cash flows to the shareholder.

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Statements of financial position at 31 March 2015 2014 Non-current assets 2 915 2 593 Current assets Inventories 324 395 Trade and other receivables 75 59 Cash and cash equivalents 408 454 Total assets 3 323 3 047 Equity and reserves Share capital 2 100 2 100 Revaluation reserve 120 Retained earnings 640 463 2 860 2 563 Non-current liabi itie Debentures 10% 300 300 Current liabilities Trade and other payables 52 44 Tax 111 129 Cash and cash equivalents 11 163 184 Total equity and liabilities 3 323 3 047