Darwin Picture Framer's commenced business on 1 January 2013. The following is a summary of the cash records kept by the firm for the 12 months ended 31 December 2013.

Required:
a) Prepare a statement of cash flow for Darwin Picture Framers from the above information.
b) Suggest three questions that a statement of cash flow can provide answers to that the income statement and the balance sheet cannot.

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Cash Receints Initial capital contributed owner Receipts from customers Bank loan repayable in 5 years Proceeds from the sale of equipment S50 000 126 000 30 000 1200 Cash Payments Equipment purchased Rent Supplies purchased Drawings by owner Interest paid S72 000 52 000 14 000 3 500 15 000 $156 500