Q. Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the year ended March31, 2019
Refer attached data.
Also give reasons for the classification of above activities as inflow /outflow
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Answer:
There is no data attached in question statement so explaining cash flow statement in general.
Explanation:
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company in a specific period of time usually this period is a month.
In order to prepare cash flow statements, there are two methods which are adapted:
- Indirect method
- Direct method
In both the methods, Whichever method be used, there are three basic sub-activities to be done to prepare CFS i.e. operating, investing and financing will be the same
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