Required.

1) Did the company use the direct or indirect method of disclosing cash flows? (2 mark)

2) Comment on the relationship between cash flow from operations and net income for the year of the statement and the previous year. (2 marks)

3) What was the most significant source of cash from operating activities during the period covered by the statement and the previous period? (2 marks)

4) What were the firms major investing activities during the period covered by the statement and the previous period? Were cash flows from operations more or less than cash flows from investing activities? (2 marks)

5) What were the most significant cash flows from financing activities during the year of the statement and the previous year? (2 marks)

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended October 31, 2018 (Expressed in thousands of United States dollars) 2018 2017 Cash flows from operating activities Income before taxation Loan loss impairment Depreciation of property and equipment Net losses/(gains) on disposals of property and equipment Net losses/(gains) on disposals and redemption of investment securities Net hedging gains Interest income earned on investment securities Interest expense incurred on other borrowed funds and debt securities Net cash flows from operating income before changes in operating assets and liabilities $ 92,989150,835 24,459 22,977 101,770 24,930 207 5,039 (466) (70,518) 6,670 (3,320) (317) (1,296) (65,040) 8,402 160,621 136,700 Changes in operating assets and liabilities: - net decrease in due from banks - net decrease/(increase) in loans and advances to customers - net increase in other assets - net (decrease)/increase in customer deposits - net increase/(decrease) in other liabilities Income taxes paid Net cash (used in)/from operating activities 19,337 272,104 (18,764) (835,001) 13,771 (13,190) (401,122) 62,995 (160,739) (8,556) 1,216,768 (27,372) (13,716) 1,206,080 Cash flows from investing activities Purchases of property and equipment Proceeds from disposal of property and equipment Purchases of investment securities Proceeds from disposals and redemption of investment securities Interest income received on investment securities Acquisition of additional interest in subsidiary Net cash from/(used in) investing activities (32,282) (3,905,109) 70,768 (35,071) 10,675 (1,944,834) 1,755,286 66,898 (213) (147,259) 3,867,781 Cash flows from financing activities Net (repayments)/proceeds on other borrowed funds and debt securities (note 22) Interest expense paid on other borrowed funds and debt securities Dividends paid to equity holders of the parent Dividends paid to non-controlling interests Net cash used in financing activities (121,777) (6,976) (294,885) (5,062) (428,700) 14,211 (7,909) (77,835)) (73,259) Net (decrease)/increase in cash and cash equivalents for the year Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents Cash and cash equivalents, end of year (note 10) (828,664) 985,562 1,165 1,525,868 $ 2,512,595 inning of year 2,512,595 S 1,684,077