To answer the questions you need to see the annual financial reports 2018 - 2019.

Requested:

Pay attention to the cash flow statement section of the financial statement photo and answer the following questions:

a) With what methods (directly / indirectly) does the company prepare cash flow statements for 2018 and 2019? Explain how you will know which method to choose!

b) State what is included in the cash flow from operating, investing, and financing activities from the 2018-2019 company report (in the photo).

c) Calculate Free Cash Flow from the financial statements you downloaded 2018 - 2019, and explain your analysis!

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018 (Expressed in thousands of Rupiah, unless otherwise stated) 2019 2018 32,502,238,389 (28,289,848,891) 25,547,387,115 (21,393,706,262) (1,549,571,203) (734,464,694) (313,606,867) (1,224,228,892) (551,348,245) (312,762,511) CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers Payments to suppliers Payments to commissioners, directors and employees Payments of corporate income tax Payments of tax and retribution Cash receipt from corporate income tax restitution Cash receipt from other taxes restitution Cash receipts from interest income Payments of interests Other receipts, net 98,808,309 86,434,180 353,918,278 96, 157,723 (530,882,408) 13.462.715 165,630,043 (524,548,812) 69,347,686 1,633,837,222 1,874,578,431 Net cash provided from operating activities 331,724,138 69,272,357 (1,137,324,142) (83,595,648) (14,467,291) (922,814) CASH FLOWS FROM INVESTING ACTIVITIES 219,692,558 Dividend receipt Sales of asset (2,137,853,867) Acquisitions of property, plant and equipment Disbursements for exploration and (4,847,510) evaluation assets (1,416,126) Disbursements for mining properties (18,917,895) Disbursements for intangible assets (782,516,038) Loan to a joint venture (368,850,000) Disbursements for other non-current assets Transaction costs relating to the (30,028,420) acquisition of subsidiary (80,051,000) Increase in investment in shares 326,458,000 Divestment of shares 284,520.934 Cash acquired from acquisition of subsidiary (50,000,000) (885,313.400) (2.593,809,364) Net cash used in investing activities 4,349,200,000 1,825,317,661 (4,326,801,500) (2,904,827,111) (306,048,761) 4,150,225,894 2,071,972,675 (5,661,044,581) (601,986,512) (47,777,374) (900,000,000) 368.850.000 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans Proceeds from investment loans Repayments of bank loans Repayments of investment loans Dividend payments Repayments of bonds payable Receipts from other payables (1,363,159,711) (619,759,898) Net cash used in financing activities NET DECREASE IN CASH AND CASH EQUIVALENTS (614,635,889) (1,338,990,831) EFFECT OF FOREIGN EXCHANGE RATE DIFFERENCES ON CASH AND CASH EQUIVALENTS (48,189,116) 87,381,896 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 4.299.068,085 5.550.677.020 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 3.636,243,080 4,299,068,085