Interpreting a cash flow statement Using the two years’ cash flow information presented, outline the three most important things you learn about Yellow Ltd.

YELLOW LTD CASH FLOW STATEMENTS OVER TWO YEARS 2021 2020

$000 $000 Cash flows from operating activities Cash receipts from customers 324 300 Cash payments to suppliers & employees (415) (280)

Interest paid (35) (10)

Net cash flow from operating activities (126) (10)

Cash flows from investing activities Proceeds from sale of PPE 10 5 Payments for PPE (154) (145)
Net cash flow from investing activities (144) (140)
Cash flows from financing activities Proceeds from the issue of shares 0 60 Increase in borrowings 220 110 Dividends paid 0 (25)
Net cash flow from financing activities 220 145 Net increase (decrease) in cash held (50) (5)
Cash at the beginning of the year 54 59 Cash at the end of the year 4 54