2. Prepare a Statement of Cash Flows for the month. (Total 15 marks)

Statement of Cash Flows

Cash Flows from operating activities
Net cash provided from operating activities
Cash from Investing Activities
Net cash used in investing activities
Cash from financing activities
Net cash provided from financing activities
Net increase/(decrease) in cash for the month
Cash at beginning of the month
Cash at the end of the month

3. From your workings above, identify 2 specific items that caused a difference between the net profit and the cash flow from operating activities. (Total 2 marks)

4. What do the 3 sections of the Cash Flow Statement reveal about the firm? (Total 6 marks)

For each of the 3 activities:

• state whether the flow is positive or negative;
• describe in words what the net cash flow for each of the 3 activities indicate and
• state whether that is a good sign or a not good sign for the business.

Operating activities:

Investing activities:

Financing activities: