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QUESTION NO. 1 a) Analyze the cash flow statement of the Fauji Fertilizer Company Limited and compute the following ratios for year 2019. (10
QUESTION NO. 1 a) Analyze the cash flow statement of the Fauji Fertilizer Company Limited and compute the following ratios for year 2019. (10 marks) i. Operating cash flow to current maturities of long term debt and current notes payable ii. Operating cash flow/total debt iii. Cash generating power iv. Earnings quality v. Capital assets ratio b) Complete the Table; (10 marks) Data Cash flow classifications Effect on cash Non Operating Investing activity activity Financing activity increase cash decrease transa ction Net loss Acquisition of land, using notes payable Payment of income taxes Retirement of bonds using cash Purchase of treasury stock Decrease in accounts payable Sale of equipment Decrease in inventory Paid cash dividend Increase in prepaid insurance 1
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