Reference no: EM133067876

1) Briefly explain the statement of cash flows.

2) Briefly explain the purposes of the cash flow statement.

3) Distinguish among the three activities of a firm.

4) Write 5 examples for operating, financing and investing activities.

5) Write 7 sources of funds and 7 uses of finance, which can be reported on the cash flow statement.

6) Distinguish between the direct and indirect method in calculating the cash flows from operating activities.

7) Briefly explain the non-cash expenses and how they are used in calculating the cash flows from operating activities.

8) With a simple example illustrate why depreciation should be added to net income to convert accrual basis net income to cash basis net income.

9) Mr. Bekbatyr got shocked when after analyzing the financial reports of his company. During the year company earned a net income of 700000 KZT, but cash flow statement showed that during the year cash decreased by 215000 KZT. Explain to Mr. Bekbatyr how this can happen.