Question Tag: Statement of Cash Flows

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  • 30 Marks

FR – May 2017 – L2 – SA – Q1 – Statement of Cash Flows

Prepare a cash flow statement for Bello Professional Nigeria Limited using the indirect method, discuss the direct method, and explain classification options for interest and dividends in cash flow statements.

The following information relates to financial statements included in the annual report of Bello Professional Nigeria Limited.

Required

a. Prepare a statement of cash flow for Bello Professional Nigeria Limited for the year ended March 31, 2015, in accordance with IAS 7 using the indirect method. (18 Marks)

b. One of the directors at the annual general meeting suggested that the direct method of preparing cash flows is more useful. Comment on this view, providing your opinion. (7 Marks)

c. IAS 7 allows different classifications in cash flow statements. Explain the classification options for the following items:

  • i. Interest paid
  • ii. Dividends received
    (5 Marks)

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  • 30 Marks

FR – May 2024 – L2 – SB – Q1 – Statement of Cash Flows

Prepare a statement of cash flows for Badary Plc using the direct method and discuss profitability, gearing, and investor's stake in Badary Plc.

Additional Information:

(i) During the year ended March 31, 2021, plant and equipment with a carrying amount of N40,000,000 were sold for N55,000,000. The profit or loss on disposal was charged to distribution expenses.
(ii) Dividend of 2 kobo per share was paid in the year ended March 31, 2021, and there were also bonus issues.
(iii) Depreciation charged for the year was N10,000,000 on furniture and N30,000,000 on plant and equipment.
(iv) During the year, an investment that cost N12,500,000 some years ago was disposed of for N20,000,000. The profit or loss on disposal was charged to administrative expenses.
(v) Dividends received were from investments in shares and the immediate disposal of rights issues from the investment in a blue-chip company.

You are required to:
a. Prepare the statement of cash flows of Badary Plc for the year ended March 31, 2021, using the direct method in accordance with IAS 7. (20 Marks)
b. Discuss the profitability, gearing, and investor’s stake in Badary Plc and recommend strategies for improving or sustaining them. (10 Marks)

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  • 16 Marks

FR – May 2019 – L2 – Q2a and Q2b – Presentation of Financial Statements (IAS 1)

Prepare the statement of cash flows for Babafrayo Nig. Ltd. using the indirect method and calculate the net cash flow from operating activities using the direct method.

Babafrayo Nig. Ltd. is a company located in Lagos and is engaged in the hotel and tourism business. The financial statements of the company are as follows:

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2018:

Description ₦’000
Revenue 994,500
Cost of sales (884,000)
Gross profit 110,500
Admin expenses (21,250)
Distribution cost (44,200)
Finance costs (4,250)
Profit before taxation 40,800
Income tax expense (5,100)
Profit for the year 35,700
Other comprehensive income
Gains on property revaluation 17,000
Total comprehensive income 52,700

Statement of Financial Position as at 31 December 2018:

Description 2018 N’000 2017 N’000
Non-current assets:
Property, plant & equipment 242,250 174,250
Total non-current assets 242,250 174,250
Current assets:
Inventories 49,300 51,000
Trade receivables 35,700 25,500
Cash and cash equivalent 2,550 4,250
Total current assets 87,550 80,750
Total assets 329,800 255,000

Additional information:

(i) Property, plant, and equipment with a carrying value of ₦23,800,000 was sold during the year ended 31 December 2018 for ₦24,650,000. The asset had originally cost ₦38,250,000.
(ii) Depreciation on property, plant, and equipment for the year 2018 amounted to ₦34,000,000.
(iii) Dividend paid during the year 2018 amounted to ₦4,250,000 and is reported in the statement of changes in equity for the year.

(a) Prepare the statement of cash flows for the year ended 31 December 2018 in accordance with IAS 7 using the indirect method.
(12 Marks)

(b) Prepare net cash flows from operating activities only using the direct method.
(6 Marks)

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  • 1 Marks

FA – May 2018 – L1 – SA – Q15 – Financial Statements Preparation

Identifies the type of activity that is not classified as an operating activity in the cash flow statement.

Which of the following is NOT an operating activity?
A. Cash receipt and cash payment of an insurance entity for premiums on claims, annuities, and other policy benefits
B. Cash advances and loans made to other parties
C. Cash payments or payments from contracts held for dealing or trading purposes
D. Cash receipts from the sale of goods and rendering of services
E. Cash receipts from royalties, fees, commissions, and other revenue

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  • 25 Marks

FR – Nov 2018 – L2 – SA – Q1a – Statement of Cash Flows (IAS 7)

Prepare a statement of cash flows for Oshodi Nigeria Ltd using the indirect method and IAS 7.

The financial statements of OSHODI Nigeria Limited for the year ended May 13, 2017, are as follows:

Statement of Profit or Loss for the year ended May 31, 2017:

Item N’m
Revenue 3,820
Cost of sales (2,620)
Gross profit 1,200
Operating expenses (300)
Profit before interest and tax 900
Interest (30)
Profit before tax 870
Taxation (270)
Net profit 600

Statement of Financial Position as at May 31, 2017 (with comparative figures for 2016):

Assets 2017 N’m 2016 N’m
Non-Current Assets
Property, plant, and equipment 1,890 1,830
Intangible assets 650 300
Total non-current assets 2,540 2,130
Current Assets
Inventory 1,420 940
Accounts receivable 990 680
Cash 70 Nil
Total current assets 2,480 1,620
Total Assets 5,020 3,750

Equity and Liabilities:

Equity 2017 N’m 2016 N’m
Ordinary shares of N1 each 750 500
Share premium 300 100
Revaluation reserve 190 Nil
Retained earnings 1,610 1,400
Total equity 2,850 2,000

OSHODI NIGERIA LIMITED
Statement of Changes in Equity for the year ended May 31 2017

Notes to the financial statements:
(1) Cost of sales includes depreciation of property, plant and equipment of N320 million and a
loss on the sale of plant of N50 million. It also includes a credit for the amortisation of
government grants. Operating expenses include a charge of N20 million for the amortisation
of goodwill

(2)

(3)

(4)

The following additional information is relevant:
(i) Intangible assets:
The company successfully completed the development of a new product during the current
year, capitalising a further N500 million before amortisation charges for the period.

(ii) Property, plant and equipment/revaluation reserve:
The company revalued its buildings by N200 million on June 1 2016. The surplus was
credited to revaluation reserve.

  • New plant was acquired during the year at a cost of N250 million and a government grant
    of N50 million was received for the plant.
  • On June 1, 2016, a bonus issue of 1 new share for every 10 held was made from the share
    premium.
  • N10 million has been transferred from the revaluation reserve to realized profits as a year-end adjustment in respect of the additional depreciation created by the revaluation.
  • The remaining movement on property, plant and equipment was due to the disposal of
    obsolete plant.

(iii) Share issue:
In addition to the bonus issue referred to above, Oshodi Nigeria Limited made a further issue
of ordinary shares for cash.

Required:
Prepare the statement of cash flows for Oshodi Nigeria Limited for the year ended May 31, 2017, using the indirect method according to IAS 7.

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  • 1 Marks

FA – May 2016 – L1 – SA – Q20 – Regulatory Environment of Accounting

Identifying which activity is not an investing activity under IAS 7.

Which of the following will NOT be regarded as an investing activity in relation to IAS 7 statement of cash flows?
A. Dividend received
B. Cash paid to acquire property, plant and equipment
C. Cash paid to acquire equities in other entities
D. Cash payment to supplier of goods and services
E. Proceeds from sale of property, plant and equipment

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  • 20 Marks

FA – May 2015 – L1 – Q6 – Financial Statements Preparation

Prepare a statement of cash flows using the direct method for the year ended 31 December 2014 with given financial data.

Financial data extracted from the books of Kandor Enterprises Limited for the year ended 31 December 2014 are shown below:

Details N’000
Revenue 6,990
Decrease in receivables 177
Cost of sales 5,128
Increase in inventories 1,483
Increase in payables 613
Selling and distribution expenses 300
Administrative expenses 343
Loss on disposal of non-current assets 6
Depreciation charges for the year 62
Ordinary shares issued for cash 400
Purchase of property, plant, and equipment 113
Income tax paid 198
Proceeds from disposal of non-current assets 3
Repayment of loan notes 10
Dividend paid 86
Interest paid on loan notes 191
Cash and cash equivalent at the beginning of the year (409)

Required:
Prepare the Statement of Cash Flows for the year ended 31 December 2014 using the direct method, showing:
a. Net cash flow from operating activities (5 Marks)
b. Net cash flow from investing activities (5 Marks)
c. Net cash flow from financing activities (5 Marks)
d. Cash and cash equivalents at the end of the year (5 Marks)

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  • 20 Marks

FR – May 2017 – L2 – Q3 – Preparation of Financial Statements

Prepare a statement of cash flows for Haruna Ltd for the year ended 31 March 2017.

The following information has been taken from the financial statements of Haruna Ltd, a listed company for the year ended 31 March 2017:

Statement of Profit or Loss and Other Comprehensive Income (extracts) for the year ended 31 March 2017:


Additional information:

i) During the year, Haruna Ltd issued both ordinary shares and redeemable preference shares for cash.

ii) Investments classified as current assets are held for the short term and are readily convertible into the stated amounts of cash on demand.

iii) During the year, Haruna Ltd sold plant and equipment with a carrying amount of GH¢840,500 for GH¢900,000. Total depreciation charges for the year amounted to GH¢1,100,000. Plant costing GH¢50,000 was purchased on credit, and the amount is included within trade and other payables.

iv) Trade and other payables include accrued interest of GH¢5,000 as at 31 March 2017 (2016: GH¢10,000).

v) Intangibles relate to development costs capitalised in accordance with IAS 38 Intangible Assets. Costs amounting to GH¢70,000 were capitalised during the year.

Required:
Prepare a Statement of Cash Flows for Haruna Ltd for the year to 31 March 2017 in accordance with IAS 7 Statement of Cash Flows.

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  • 20 Marks

CR – Nov 2021 – L3 – Q5 – Analysis and Interpretation of Financial Statements

Produce a report analyzing the cash flow performance of Saglema Plc relative to a competitor over two years and explain the uses and limitations of cash flow analysis.

You are the Senior Financial Accountant at Saglema Plc (Saglema), a company that manufactures and sells painting materials in the local market and around the West African sub-region. At the first one-on-one meeting with the recently appointed chairperson of your company’s governing board, she asked you to produce a concise report on Saglema’s cash flow performance relative to that of Adidome Plc (Adidome), a close competitor, over the last two years.

The following are the cash flow statements for the last two years for Saglema and Adidome:

Cash Flow Statements for the Year Ended 31 August 2020 (together with comparatives):

Required:

i) Produce a report showing the comparative analysis of the cash flow performance and situation of Saglema over the last two years, relative to that of Adidome. (15 marks)
ii) Explain TWO (2) uses and THREE (3) limitations of such analysis. (5 marks)

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  • 20 Marks

FA – Nov 2023 – L1 – Q4 – IAS 7: Statement of cash flows

Prepare a statement of cash flows for Oti Ltd for the year ended 31 March 2022, including a discussion on cash equivalents.

Extracts from the financial statements for Oti Ltd for the year ended 31 March 2022 are as follows:

Statement of Profit or Loss for the year ended 31 March 2022

Description Amount (GHȼ)
Profit from operations 752,960
Interest payable (60,420)
Profit before tax 692,540
Income tax (210,400)
Profit for the year 482,140

Statements of Financial Position as at 31 March

Description 2022 (GHȼ) 2021 (GHȼ)
Non-current assets
Property, plant, and equipment 1,480,000 1,297,570
Current assets
Inventories 440,000 295,000
Trade receivables 385,840 197,750
Bank – 4,120
Total assets 2,305,840 1,794,440
Equity and liabilities
Share capital 640,800 540,200
Retained earnings 641,340 301,200
Non-current liabilities
10% Loan note 604,200 604,200
Current liabilities
Trade payables 154,700 150,300
Income tax payable 204,600 198,540
Bank overdraft 60,200 –
Total equity and liabilities 2,305,840 1,794,440

Additional information:

i) The depreciation charged for the year was GHȼ200,000.
ii) Dividends of GHȼ142,000 were paid during the year.
iii) During the year, plant with an original cost of GHȼ450,000 and a carrying amount at the date of disposal of GHȼ315,000 was sold for GHȼ412,000, which was received in cash.

Required:

a) In accordance with IAS 7: Statement of Cash Flows, prepare a Statement of Cash Flows for Oti Ltd for the year ended 31 March 2022. (18 marks)
b) Explain what is meant by the term ‘cash equivalents’ in relation to cash flow statements. (2 marks)

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  • 30 Marks

FR – May 2017 – L2 – SA – Q1 – Statement of Cash Flows

Prepare a cash flow statement for Bello Professional Nigeria Limited using the indirect method, discuss the direct method, and explain classification options for interest and dividends in cash flow statements.

The following information relates to financial statements included in the annual report of Bello Professional Nigeria Limited.

Required

a. Prepare a statement of cash flow for Bello Professional Nigeria Limited for the year ended March 31, 2015, in accordance with IAS 7 using the indirect method. (18 Marks)

b. One of the directors at the annual general meeting suggested that the direct method of preparing cash flows is more useful. Comment on this view, providing your opinion. (7 Marks)

c. IAS 7 allows different classifications in cash flow statements. Explain the classification options for the following items:

  • i. Interest paid
  • ii. Dividends received
    (5 Marks)

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  • 30 Marks

FR – May 2024 – L2 – SB – Q1 – Statement of Cash Flows

Prepare a statement of cash flows for Badary Plc using the direct method and discuss profitability, gearing, and investor's stake in Badary Plc.

Additional Information:

(i) During the year ended March 31, 2021, plant and equipment with a carrying amount of N40,000,000 were sold for N55,000,000. The profit or loss on disposal was charged to distribution expenses.
(ii) Dividend of 2 kobo per share was paid in the year ended March 31, 2021, and there were also bonus issues.
(iii) Depreciation charged for the year was N10,000,000 on furniture and N30,000,000 on plant and equipment.
(iv) During the year, an investment that cost N12,500,000 some years ago was disposed of for N20,000,000. The profit or loss on disposal was charged to administrative expenses.
(v) Dividends received were from investments in shares and the immediate disposal of rights issues from the investment in a blue-chip company.

You are required to:
a. Prepare the statement of cash flows of Badary Plc for the year ended March 31, 2021, using the direct method in accordance with IAS 7. (20 Marks)
b. Discuss the profitability, gearing, and investor’s stake in Badary Plc and recommend strategies for improving or sustaining them. (10 Marks)

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  • 16 Marks

FR – May 2019 – L2 – Q2a and Q2b – Presentation of Financial Statements (IAS 1)

Prepare the statement of cash flows for Babafrayo Nig. Ltd. using the indirect method and calculate the net cash flow from operating activities using the direct method.

Babafrayo Nig. Ltd. is a company located in Lagos and is engaged in the hotel and tourism business. The financial statements of the company are as follows:

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2018:

Description ₦’000
Revenue 994,500
Cost of sales (884,000)
Gross profit 110,500
Admin expenses (21,250)
Distribution cost (44,200)
Finance costs (4,250)
Profit before taxation 40,800
Income tax expense (5,100)
Profit for the year 35,700
Other comprehensive income
Gains on property revaluation 17,000
Total comprehensive income 52,700

Statement of Financial Position as at 31 December 2018:

Description 2018 N’000 2017 N’000
Non-current assets:
Property, plant & equipment 242,250 174,250
Total non-current assets 242,250 174,250
Current assets:
Inventories 49,300 51,000
Trade receivables 35,700 25,500
Cash and cash equivalent 2,550 4,250
Total current assets 87,550 80,750
Total assets 329,800 255,000

Additional information:

(i) Property, plant, and equipment with a carrying value of ₦23,800,000 was sold during the year ended 31 December 2018 for ₦24,650,000. The asset had originally cost ₦38,250,000.
(ii) Depreciation on property, plant, and equipment for the year 2018 amounted to ₦34,000,000.
(iii) Dividend paid during the year 2018 amounted to ₦4,250,000 and is reported in the statement of changes in equity for the year.

(a) Prepare the statement of cash flows for the year ended 31 December 2018 in accordance with IAS 7 using the indirect method.
(12 Marks)

(b) Prepare net cash flows from operating activities only using the direct method.
(6 Marks)

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  • 1 Marks

FA – May 2018 – L1 – SA – Q15 – Financial Statements Preparation

Identifies the type of activity that is not classified as an operating activity in the cash flow statement.

Which of the following is NOT an operating activity?
A. Cash receipt and cash payment of an insurance entity for premiums on claims, annuities, and other policy benefits
B. Cash advances and loans made to other parties
C. Cash payments or payments from contracts held for dealing or trading purposes
D. Cash receipts from the sale of goods and rendering of services
E. Cash receipts from royalties, fees, commissions, and other revenue

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  • 25 Marks

FR – Nov 2018 – L2 – SA – Q1a – Statement of Cash Flows (IAS 7)

Prepare a statement of cash flows for Oshodi Nigeria Ltd using the indirect method and IAS 7.

The financial statements of OSHODI Nigeria Limited for the year ended May 13, 2017, are as follows:

Statement of Profit or Loss for the year ended May 31, 2017:

Item N’m
Revenue 3,820
Cost of sales (2,620)
Gross profit 1,200
Operating expenses (300)
Profit before interest and tax 900
Interest (30)
Profit before tax 870
Taxation (270)
Net profit 600

Statement of Financial Position as at May 31, 2017 (with comparative figures for 2016):

Assets 2017 N’m 2016 N’m
Non-Current Assets
Property, plant, and equipment 1,890 1,830
Intangible assets 650 300
Total non-current assets 2,540 2,130
Current Assets
Inventory 1,420 940
Accounts receivable 990 680
Cash 70 Nil
Total current assets 2,480 1,620
Total Assets 5,020 3,750

Equity and Liabilities:

Equity 2017 N’m 2016 N’m
Ordinary shares of N1 each 750 500
Share premium 300 100
Revaluation reserve 190 Nil
Retained earnings 1,610 1,400
Total equity 2,850 2,000

OSHODI NIGERIA LIMITED
Statement of Changes in Equity for the year ended May 31 2017

Notes to the financial statements:
(1) Cost of sales includes depreciation of property, plant and equipment of N320 million and a
loss on the sale of plant of N50 million. It also includes a credit for the amortisation of
government grants. Operating expenses include a charge of N20 million for the amortisation
of goodwill

(2)

(3)

(4)

The following additional information is relevant:
(i) Intangible assets:
The company successfully completed the development of a new product during the current
year, capitalising a further N500 million before amortisation charges for the period.

(ii) Property, plant and equipment/revaluation reserve:
The company revalued its buildings by N200 million on June 1 2016. The surplus was
credited to revaluation reserve.

  • New plant was acquired during the year at a cost of N250 million and a government grant
    of N50 million was received for the plant.
  • On June 1, 2016, a bonus issue of 1 new share for every 10 held was made from the share
    premium.
  • N10 million has been transferred from the revaluation reserve to realized profits as a year-end adjustment in respect of the additional depreciation created by the revaluation.
  • The remaining movement on property, plant and equipment was due to the disposal of
    obsolete plant.

(iii) Share issue:
In addition to the bonus issue referred to above, Oshodi Nigeria Limited made a further issue
of ordinary shares for cash.

Required:
Prepare the statement of cash flows for Oshodi Nigeria Limited for the year ended May 31, 2017, using the indirect method according to IAS 7.

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  • 1 Marks

FA – May 2016 – L1 – SA – Q20 – Regulatory Environment of Accounting

Identifying which activity is not an investing activity under IAS 7.

Which of the following will NOT be regarded as an investing activity in relation to IAS 7 statement of cash flows?
A. Dividend received
B. Cash paid to acquire property, plant and equipment
C. Cash paid to acquire equities in other entities
D. Cash payment to supplier of goods and services
E. Proceeds from sale of property, plant and equipment

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  • 20 Marks

FA – May 2015 – L1 – Q6 – Financial Statements Preparation

Prepare a statement of cash flows using the direct method for the year ended 31 December 2014 with given financial data.

Financial data extracted from the books of Kandor Enterprises Limited for the year ended 31 December 2014 are shown below:

Details N’000
Revenue 6,990
Decrease in receivables 177
Cost of sales 5,128
Increase in inventories 1,483
Increase in payables 613
Selling and distribution expenses 300
Administrative expenses 343
Loss on disposal of non-current assets 6
Depreciation charges for the year 62
Ordinary shares issued for cash 400
Purchase of property, plant, and equipment 113
Income tax paid 198
Proceeds from disposal of non-current assets 3
Repayment of loan notes 10
Dividend paid 86
Interest paid on loan notes 191
Cash and cash equivalent at the beginning of the year (409)

Required:
Prepare the Statement of Cash Flows for the year ended 31 December 2014 using the direct method, showing:
a. Net cash flow from operating activities (5 Marks)
b. Net cash flow from investing activities (5 Marks)
c. Net cash flow from financing activities (5 Marks)
d. Cash and cash equivalents at the end of the year (5 Marks)

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  • 20 Marks

FR – May 2017 – L2 – Q3 – Preparation of Financial Statements

Prepare a statement of cash flows for Haruna Ltd for the year ended 31 March 2017.

The following information has been taken from the financial statements of Haruna Ltd, a listed company for the year ended 31 March 2017:

Statement of Profit or Loss and Other Comprehensive Income (extracts) for the year ended 31 March 2017:


Additional information:

i) During the year, Haruna Ltd issued both ordinary shares and redeemable preference shares for cash.

ii) Investments classified as current assets are held for the short term and are readily convertible into the stated amounts of cash on demand.

iii) During the year, Haruna Ltd sold plant and equipment with a carrying amount of GH¢840,500 for GH¢900,000. Total depreciation charges for the year amounted to GH¢1,100,000. Plant costing GH¢50,000 was purchased on credit, and the amount is included within trade and other payables.

iv) Trade and other payables include accrued interest of GH¢5,000 as at 31 March 2017 (2016: GH¢10,000).

v) Intangibles relate to development costs capitalised in accordance with IAS 38 Intangible Assets. Costs amounting to GH¢70,000 were capitalised during the year.

Required:
Prepare a Statement of Cash Flows for Haruna Ltd for the year to 31 March 2017 in accordance with IAS 7 Statement of Cash Flows.

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  • 20 Marks

CR – Nov 2021 – L3 – Q5 – Analysis and Interpretation of Financial Statements

Produce a report analyzing the cash flow performance of Saglema Plc relative to a competitor over two years and explain the uses and limitations of cash flow analysis.

You are the Senior Financial Accountant at Saglema Plc (Saglema), a company that manufactures and sells painting materials in the local market and around the West African sub-region. At the first one-on-one meeting with the recently appointed chairperson of your company’s governing board, she asked you to produce a concise report on Saglema’s cash flow performance relative to that of Adidome Plc (Adidome), a close competitor, over the last two years.

The following are the cash flow statements for the last two years for Saglema and Adidome:

Cash Flow Statements for the Year Ended 31 August 2020 (together with comparatives):

Required:

i) Produce a report showing the comparative analysis of the cash flow performance and situation of Saglema over the last two years, relative to that of Adidome. (15 marks)
ii) Explain TWO (2) uses and THREE (3) limitations of such analysis. (5 marks)

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  • 20 Marks

FA – Nov 2023 – L1 – Q4 – IAS 7: Statement of cash flows

Prepare a statement of cash flows for Oti Ltd for the year ended 31 March 2022, including a discussion on cash equivalents.

Extracts from the financial statements for Oti Ltd for the year ended 31 March 2022 are as follows:

Statement of Profit or Loss for the year ended 31 March 2022

Description Amount (GHȼ)
Profit from operations 752,960
Interest payable (60,420)
Profit before tax 692,540
Income tax (210,400)
Profit for the year 482,140

Statements of Financial Position as at 31 March

Description 2022 (GHȼ) 2021 (GHȼ)
Non-current assets
Property, plant, and equipment 1,480,000 1,297,570
Current assets
Inventories 440,000 295,000
Trade receivables 385,840 197,750
Bank – 4,120
Total assets 2,305,840 1,794,440
Equity and liabilities
Share capital 640,800 540,200
Retained earnings 641,340 301,200
Non-current liabilities
10% Loan note 604,200 604,200
Current liabilities
Trade payables 154,700 150,300
Income tax payable 204,600 198,540
Bank overdraft 60,200 –
Total equity and liabilities 2,305,840 1,794,440

Additional information:

i) The depreciation charged for the year was GHȼ200,000.
ii) Dividends of GHȼ142,000 were paid during the year.
iii) During the year, plant with an original cost of GHȼ450,000 and a carrying amount at the date of disposal of GHȼ315,000 was sold for GHȼ412,000, which was received in cash.

Required:

a) In accordance with IAS 7: Statement of Cash Flows, prepare a Statement of Cash Flows for Oti Ltd for the year ended 31 March 2022. (18 marks)
b) Explain what is meant by the term ‘cash equivalents’ in relation to cash flow statements. (2 marks)

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