Question
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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