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Since early 2020 the airline industry has been significantly impacted by the lockdowns due to the pandemic (COVID-19). The operating results of Qantas Airways (Qantas)

Since early 2020 the airline industry has been significantly impacted by the lockdowns due to the pandemic (COVID-19). The operating results of Qantas Airways (Qantas) reflect this impact. Qantas reports a statutory loss of $1,964 million for the year ended 30 June 2020 compared to a profit of $840 million for the year ended 30 June 2019. Qantas reports the following in its Statement of Cash Flows:

For the year ended 30 June

2020 ($m)

2019 ($m)

Net cash from operating activities

1,083

3,164

Net cash used in investing activities

(1,571)

(1,563)

Net cash from financing activities

1,853

(1,150)

Cash and cash equivalents at the end of the year

3,520

2,157

Critically discuss one benefit of the information reported in the Statement of Cash Flows to investors of Qantas. In your critical analysis, also consider the limitations of the benefit discussed. [To answer this question, you are NOT required to review the annual report of Qantas.]

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