Chapter 16, Problem 17E

To determine

Concept Introduction:

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.

Investing Activities: Investing activities are the activities related to acquisition and disposal of long term assets and investments. The investments are those investments which are not included in cash & cash equivalent.

Financing Activities: Financing activities are the activities which results in change in size and composition of owner’s capital and borrowing of the enterprise.

To Calculate and Prepare:

1. The Cash Flow from/(Used in) Operating Activities
2. The Cash Flow from/(Used in) Investing Activities
3. The Cash Flow from/(Used in) Financing Activities
4. The Cash Flow Statement for the Year ended on Dec 31,2015