Reference no: EM132564158

Question 1: Consider the following transaction and prepare cash flow statement using transaction approach

a) An amount of 550 was raised from the issue of share capital and and a further 250 was raised from long term borrowings

b) Interest expense was 800 of which 200 was paid during the period

c) Dividend was paid were 1400

d) Tax was paid amounted to 60

e) During the period, the enterprise accepted fixed asset for 450. The payment was made in cash

f) Provided services and received cash 1500

g) Cash paid to suppliers for raw materials 600

h) Purchased automobile for business on cash amounted 500

i) Salaries and wages paid 300

Question 2: Why there is a need to analyze financial statements?