12 Editing Q3 B. (20 Maris) 1. When we prepare a Income Statement and a Balance Sheet then why do we prepare a Cash Flow Statement? Please prepare'a simple Cash Flow Statement proforma with assumed figures and highlight the components of the Cash Flow Statements which are flowing from the Income Statement and the Balance Sheet. (10 Marks) 2. A firm pays $100 in period 1 to produce some goods. It sells those goods for $150 in period 2 but does not collect payment from its customers until period a) Calculate the cash flows to the firm in each period by completing the following table. b) Do the resulting values for net cash flow in each period make sense? 1 2 Period Sales Change in Account Receivables Cost oof goods sold 3 of 5