
(a)
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flows from operating activities
These refer to the cash received or cash paid in day-to-day operating activities of a company.
Direct method: Direct method uses the basis of cash for preparing the cash flows of statement.
To give: The formula used under direct method for computing cash receipts from customers.
(b)
To give: The formulas used under direct method for computing cash payments made to suppliers.

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Chapter 12 Solutions
FINANCIAL ACCOUNTING-STD.WILEY PLUS
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