The Statement of Cash Flows

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Discuss the interrelationship of the cash flow statement to the other financial statements. In your discussion
comment and explain operating activities, investing activities, and financing activities. What is the difference
between an indirect and a direct cash flow statement? Which is GAAP?

Sample Solution

Statement of Cash Flows is principally related to balance sheet as it explains the impacts of change in cash and cash equivalents balance at the beginning and end of the reporting period in terms of the cash flow impact of changes in the components of balance sheet including assets, liabilities and equity reserves. Consequently, cash flow statement mirrors the escalation or decline in cash flow arising from change in share capital reserves arising from share capital issues and redemption; Change in retained earnings as a result of net profit or loss recognized in the income statement upon adjusting non-cash items and dividend payments and change in long term loans due to receipt or repayment of loans

workers can utilize. Representatives appreciate swimming, playing tennis, b-ball, and racket ball. They will soothe worry through games. Furthermore, SAS gives a free social insurance program, and it covers for the representatives’ families. SAS has a framework to deal with representatives who is an ailment. They can get leave to rely upon the malady degree. SAS encouraged to return to the home after a moderate working time. SAS individuals don’t get over works. At long last, the turnover at SAS is lower than others. The normal turnover is 20%. Then again, the turnover at SAS is less of 4%. Representatives appreciate working and have come to remain in the organization.

I concur with the SAS exertion. In my nation, it is a defining moment to change the working style. Up to this point, the organization concentrated on persevering. In this manner, representatives exhausted each day, and they dithered to return to their home in an end hour. Nonetheless, our administration chose to change the working style. Our administration respects that the nature of work isn’t the length of working time however the nature of undertakings. It is called work-life balance in my nation. As of late, in my organization, the quantity of more youthful age is diminishing. Actually, the quantity of retirement ages is expanding. In this way, the legislature made an arrangement to ensure enough quantities of laborers. The objective is ladies and resigned laborers. On the off chance that they keep on working in the organization, for instance, after the marriage or retirement, the organization will run successfully. The organization needs to change the generalization working style to a

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