Solution-Do you think a statement of cash flows serves any

Do you think a statement of cash flows serves any purpose

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Reference no: EM13343445

Question-

The following is extracted from the financial statements of Action Ltd.

During the year 2010, the company:

- sold a machine (cost = $5,000; accumulated depreciation $3,000);

- purchased an equipment;

- did not engage in any share buyback;

- issued new shares; and

- paid cash dividends.

Required:

(a) Prepare a statement of cash flows for Action Ltd for the year ended 31 December 2010 using the indirect method.

(b) Consider the organisation in which you are working in (or one in which you are familiar with). Do you think a statement of cash flows serves any purpose? Explain why you think so and its purpose if any.

Reference no: EM13343445

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Do you think a statement of cash flows serves any purpose

Reference no: EM13343445

Reference no: EM13343445

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