ACC412- Group No.

b) The results and effects of various events in cash flow statement by:

i. Operational cash flow:

As long as the firm generated positive cashflow from operating activities. This is a good
indicator that the company is operating effectively.

Account receivables in 2018 were estimated 34,000$ and decreased to 15,000$ in 2019, this
of cash from customers.

ii. Investment cash flow:

Cash flow from investing activities is positive because of the sale transaction. According to
the information, the company is not investing for its' long-term grow. The firm should invest
more to gain advantage in a long-term basis.

iii. Financial cash flow:

Cashflow from financing activities was negative, which is a good indicator The repayment of
bonds (25,000) means that the company has enough cash and is able to pay its debts. The sale
of common stock will lead to an increase in cash by 4000. Moreover, referring to the amout
in the operating activities, the company has the ability to distribute some of its cash as
dividends paid to shareholders, Which is a good indicator.

Furthermore, it can be noticed that the ending cash balance increased in comparision with the
beginning cash balance. This indicates that the firm's overall cash is better than the previous
year.