Day 3. Financial statements

F5. Statements of cash flows

a) Differentiate between profit and cash flow.
b) Understand the need for management to control cash flow.
c) Recognise the benefits and drawbacks to users of the financial statements of a statement of cash flows. 
d) Classify the effect of transactions on cash flows.
e) Calculate the figures needed for the statement of cash flows including:
i) Cash flows from operating activities
ii) Cash flows from investing activities
iii) Cash flows from financing activities

f) Calculate the cash flow from operating activities using the indirect and direct method.
g) Prepare statements of cash flows and extracts from statements of cash flows from given information.
h) Identify the treatment of given transactions in a company’s statement of cash flows.