Question 2 Based on your understanding of the cash flow statement, describe why the information in a cash flow statement is important for an analyst. (5 marks) (b) For a rapidly expanding company, what kind of trend do you expect to see in its financial statements in two successive years? Determine and define two (2) accounts to look out for and justify your answers. (4 marks) Based on information in the Excel sheet below, utilise the DuPont formula to calculate the Return on Equity (ROE) of Company A and of Company B in 2019 using the following guidelines. Round your answers to three (3) decimal points. In your calculation, state the DuPont formula and clearly indicate your steps of calculation for both Company A and Company B. Write down the Excel formulas for calculating the net profit margin, asset tumover ratio, and leverage for Company A. Interpret the performance of both companies assuming that they are in the same industry c) . 1 2 Accounts as at the end of (in 9 million): 3 Revenue 4 Net income 5 Total current assets 6 Total fixed assets 7 Total liabilities 8 Total equity B C Company A 2019 2018 3662 3565 866 711 7823 3780 3961 3655 2004 1413 9580 6022 D E Company B 2019 2018 2356 2189 790 689 7499 4578 3221 3954 3583 2766 7137 5766 (16 marks