b) Analyse the activities under the three sections of the cash flow statement and suggest possible reasons for this, indicating whether the management of Dubious Plc should be concerned or not (40 marks)

IAS 7 requires that the statement of cash flows should report cash flows "classified by operating, investing and financing activities". Below is an extract of a statement of cashflow of Dubious plc. Statement of cash flows for the vear ended 31st December 2020 ine above statement or casn mows snows negauve casn now rrom operaung acuviues and a net decrease in cash and cash equivalents at the end of the year. IAS 7 requires that the statement of cash flows should report cash flows "classified by operating, investing and financing activities". Below is an extract of a statement of cashflow of Dubious plc. Statement of cash flows for the vear ended 31st December 2020 ine above statement or casn mows snows negauve casn now rrom operaung acuviues and a net decrease in cash and cash equivalents at the end of the year