(a) Based on above statement, there are two methods of presenting the cash flow from the operating activity which will produce the same results. Thus, state TWO (2) methods and discuss THREE (3) components of statement of cash flow. (15 marks)

(b) Cash Flow Statement is a report on a business entitys major cash inflows and outflows for a period. Explain whether it is important to have the Statement of Cash Flow in the company or not. Justify your answer. (10 marks)

A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses