Q No $2$: A$).$ What is cash flow statement? Briefly explain that which portion of financial statements used to prepare operating, investing, and financing activities of a corporation?

B$).$ You are working in Pakistan paper products as an internee accountants. Prepare cash flow statement operating activities using indirect method for June $30,2022.$

Balance sheet of the company

Title $20222021$

Assets

cash and equivalents $ $12$ $ $10$

Account receivable $ $180$ $ $150$

Inventories $ $180$ $ $200$

Total Current Assets $ $372$ $ $360$

New Plant and equipment $ $300$ $ $250$

Total Assets $ $672$ $ $610$

Liabilities and Equity

Account Payable $ $108$ $ $90\mathrm{.}0$

Notes Payable $ $67$ $ $51\mathrm{.}5$

Accruals $ $72$ $ $60\mathrm{.}0$

Total Current liability $ $247$ $ $201\mathrm{.}5$

Long term bonds $ $150$ $ $150\mathrm{.}0$

Total debt $ $397$ $ $351\mathrm{.}5$

Common stock $(50$ Million shares$)$ $ $50\mathrm{.}0$ $ $50\mathrm{.}0$

Retained Earnings $ $225\mathrm{.}0$ $ $208\mathrm{.}5$

Common Equity $ $275\mathrm{.}0$ $ $258\mathrm{.}5$

Total liability and equity $ $672$ $ $610$

Income statement of the PPP

Particulars $2022$

Sale $ $1,200\mathrm{.}00$

Operating costs excluding depreciation and amortization $ $1,020\mathrm{.}00$

EBITDA $ $180\mathrm{.}00$

Depreciation and amortization $ $30\mathrm{.}00$

Earnings before interest and taxes $ $150\mathrm{.}00$

Interest $ $21\mathrm{.}70$

Earnings before taxes $ $128\mathrm{.}30$

Taxes $(40\%)$ $ $51\mathrm{.}30$

Net Income $ $77\mathrm{.}00$