
Concept Introduction:
Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a
Statement of Cash Flows: It is a financial statement that shows the movements of cash and bank balance during a period. It describes the amount of cash generated by a company during a period and the use of the cash. This is divided into three major activities that are operating, investing and financing activities.
Operating activities: Operating activities includes cash flows generated from regular business activities such as cash received from sale of products, supplier payments.
Investing activities: Investing activities includes cash flows generated from buying and selling of assets such as building, machinery.
Financing Activities: Financing activities includes cash flows generated form equity and debt such as payment of dividends, cash received from owner.
1.
To Prepare: A statement of cash flows for Banji Company for year ended, 2017.

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Chapter 1 Solutions
Fundamental Accounting Principles
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