A. In financial accounting, a cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis down to operating, investing, and financing activities. The cash flow statement is intended to provide information on a firms liquidity and solvency, improve the comparability of different firms operating performance, and to indicate the amount, timing, and probability of future cash flows. Ankara Berhads Statement of Cash Flows for years 2017, 2018 and 2019 are as follows: Ankara Berhads Statement of Cash Flows 31 December 2017 2018 2019 RM (million) RM (million) RM (million) Operating Activities: Loss from continuing operations (755.8) (1247) (641.2) Depreciation 336.8 440.2 526.8 Amortization of capitalized software 82.8 116.4 78.2 Gain from sale of investments and other assets (33) (238) - Restructuring and other unusual items, net 271 768.2 250.6 Changes in other accounts affecting operations: Account receivables 321.6 146.8 (90.4) Inventory 160.4 201.8 (6.0) Other current assets 34.0 (2.4) (26.0) FBA/PFS3263/APRIL21 CONFIDENTIAL/6 Accounts payable (182.6) (42.6) 82.0 Other current liabilities 5.6 28.2 (21.0) Net cash provided by continuing operations 240.6 171.6 153 Net cash provided by (used in) discontinued operations 9.8 7.0 (59.4) Net cash provided by operating activities 250.4 178.6 93.6 Investing Activities: Investment in depreciable assets (259.4) (348.8) (607.2) Proceeds from disposal of depreciable and other assets 314.0 484.0 188.2 Proceeds from the sale of discontinued operations 50.6 814.6 - Investment in capitalized software (55.6) (86.2) (119.0) Other (12.0) (26.0) 28.4 Net cash provided (used in) investing activities 37.6 837.6 (509.6) Financing Activities: (Decrease)/Increase in short-term borrowing (5.2) (445.2) 279.6 Proceeds from long- term debt 88.8 335.4 610.0 Payments of long-term debt (253.0) (1089.6) (183.4) Proceeds from sale of common stock 10.0 17.4 35.0 Purchase of treasury stock (0.6) (1.2) (37.6) Dividends paid - (14.4) (52.0) Net cash provided by (used in) financing activities (160.0) (1197.6) 651.6 Effect of changes in foreign Exchange rates 0.2 2.2 (7.8) Increase (decrease) in cash 128.2 (179.2) 227.8 Cash at beginning of year 338.2 517.4 289.6 Cash at end of year 466.4 338.2 517.4

Required: For each financial year, answer the following questions

: a. State the firms major sources and uses of cash. (4 marks)

b. Explain why cash flow from operations is greater than net income. (6 marks)

c. Was the firm able to generate enough cash from operations to pay for all of its capital expenditures? (4 marks)

d. What was the trend in net income and cash flow from continuing operations? (4 marks)

e. Based on the evidence in the statement of cash flow alone, discuss the financial strength of the business.