Question $3$

Richie Wang has further instructed you to study the Statement of Cash flows of another company, Up & Down Ltd$,$ in which your company holds a substantial number of shares.

He is concerned that the company's cash balance has decreased from $$1,224,000$ on $31$December $2022$ to $$210,000$ on $31$ December $2023.$

You have also established from the company's statement of financial position that its totalassets were $$10,800,000$ on $31$ December $2023.$

Question:

Review the statement of cash flows above. Do you think Richie's concern is justified? Discuss.