The financial statements of Eastern Platinum Limited (Eastplats) are presented in Appendix A at the end of

Question:

The of Eastern Platinum Limited (Eastplats) are presented in Appendix A at the end of this book. Instructions
(a) Does East plats use the indirect or direct method of calculating operating activities?
(b) What was the amount of net operating cash flows reported for 2010? For 2009?
(c) From your analysis of the 2010 statement of cash flows, what was the most significant investing activity? Financing activity?
(d) What amount was reported as the increase or decrease in cash and cash equivalents on the statement of cash flows for 2010? 2009?
(e) How does East plats define cash and cash equivalents? Do the cash and cash equivalents reported on the statement of cash flows reconcile to the statement of financial position amounts that are reported? Provide details of the reconciliation.
(f) Did Eastplats report any significant noncash investing and financing activities in 2010 or 2009?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...