Read and analyse the cash flow statements and ascertain:$($i$)$ which method $($direct or indirect$)$ is used for the purpose of calculating cash flows from operating activities;$($ii$)$ The treatment of special items such as dividend tax, profit$/$loss on sale of fixed assets, depreciation extraordinary items, etc.$($iii$)$ Whether all companies follow the same proforma of cash flow statement or different ones.$($iv$)$ As to whether you think that companies properly highlight cash flow statement in their Annual Reports

:a$)$ Indicate the period analysed$-$ the period should follow each other say $2022,2023,$

EAAGADS LIMITED

STATEMENT OF CASH FLOWS

Notes

$2019$

$2018$

OPERATING ACTIVITIES

Profit$/($loss$)$ before tax

Depreciation

Amortization

Unrealized foreign exchange gain

Increase in retirement benefit obligations

Leave accrual

Bad debts written off

Interest expense

Loss$/($gain$)$ arising from changes in fair value of biological assets less estimated costs to sell

Operating profit $/($loss$)$ before working capital changes

Retirement benefits paid

Movement in trade and other receivables

Increase in amounts due to related companies

Decrease in amounts due from related companies

Decrease in inventories

Increase in trade and other payables

Net cash generated from$/($used in$)$ operating activities

INVESTING ACTIVITIES

Purchase of property and equipment

Net cash used in investing activities

FINANCING ACTIVITIES

Interest paid

Advances from Coffee Management Services

Repayment of advances from Coffee Management Services

Net cash used in financing activities

Net increase$/($decrease$)$ in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Effect of exchange rate changes on cash and cash equivalents

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