Study the Cash Flow Statement of a hypothetical company and answer the accompanying questions.

Questions:

1. Determine net flow from operating activities in accounting year 3 and 4
2. Determine net cash flow from investing activities in accounting year 3 and 4
3. Determine net cash flow from financing activities in accounting year 3 and 4.
4. How is the cash balance at the close of the accounting period reported on the other financial statement?
5. What is the interrelationship between the four financial statements (balance sheet, income statement, cash flow statement and the statement of changes in equity)?

Description Accounting Year 3 3 862 886 Accounting Year 4 4 505 308 66 111 241 32 766 565 6 805 064 50 377 011 46 054 207 3 248 909 (60 905 740) (2 208 925) (2 405 384) (1 628 763) (33 064170) (1 897 411) 3 572 477 (47 083111) (1 457 498) (2 451 661) (1 836 398) (46 196 789) (681 726) (27 056) 3 653 2 606 20 662 637 469 408 877 224 10 236117 149 002 901 526 Balance at the beginning of the year Operating activities cash flow Proceeds from buyers and customers Proceeds from sale of currency Other revenues Moneys assigned for: payment of purchased goods, works, services, raw materials and other current assets payment of salaries and wages payment of dividends and interest payment of taxes and charges purchase of currency other expenses Net proceeds from current activities Investment activities cash flow Proceeds from sale of fixed assets and other non- current property Proceeds from sale of securities and other financial investments Dividends received Interest received Proceeds from repayment of loans extended to other organizations and accounts receivable purchased Target financing raised for construction Repayment of deposits Purchase of subsidiaries Purchase of fixed assets, income yielding investments in tangibles, and intangible assets Purchase of securities and other financial investments Loans extended to other organizations Deposits in credit organizations Purchase of fixed assets by target financing Net proceeds from investment activities Financial activities cash flow Proceeds from loans and credits extended by other organizations Proceeds from issue of shares Repayment of loans and credits (interest free) Discharge of financial lease liabilities Net proceeds form financial activities Net increase (decrease) of moneys and equivalent thereof Cash balance at the close of the accounting period 1 1039 390 5027 367 85 158 000 (2 172 612) 5 408 215 4 656 427 342 889 136 (4 547 667) (3 978 001) (6 023 540) (41 123 625) (10 076179) (83 608 000) (5 029 874) (22 750 612) (10 203 288) (9 014 600) (339 789136) (4 513 052) (9 848 254) 27 274 862 12 852 263 24 880 324 (17 667 656) (686 875) 19 378 056 (17 603 627) (342 091) 9 329144 199 921 (546166) 4 062 807 3 959 142