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A. In financial accounting, a cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis down to operating, investing, and financing activities. The cash flow statement is intended to provide information on a firm's liquidity and solvency, improve the comparability of different firms' operating performance, and to indicate the amount, timing. and probability of future cash flows. Ankara Berhad's Statement of Cash Flows for years 2017, 2018 and 2019 are as follows: Ankara Berhad's Statement of Cash Flows 31 December 2017 2018 2019 RM (million) RM (million) RM (million) Operating Activities: Loss from continuing operations (755.8) (1247) (641.2) Depreciation 336.8 440.2 526.8 Amortization of capitalized 82.8 116.4 78.2 software Gain from sale of investments and (33) (238) other assets Restructuring and other unusual 271 768.2 250.6 items, net Changes in other accounts affecting operations: Account receivables 321.6 146.8 90.4) Inventory 160.4 201.8 (6.0) Other current assets 34,0 (2.4) (26.0) CONFIDENTIAL/S FBA/PFS3263/APRIL21 Accounts payable (182.6) (42.6) 82.0 Other current liabilities 5.6 28.2 (21.0) Net cash provided by continuing 240.6 171.6 153 operations Net cash provided by (used in) 9.8 7.0 (59.4) discontinued operations Net cash provided by operating 250.4 178.6 93.6 activities Investing Activities: Investment in depreciable assets (259.4) (348.8) (607.2) Proceeds from disposal of 314.0 484.0 188.2 depreciable and other assets Proceeds from the sale of 50.6 814.6 discontinued operations Investment in capitalized software (55.6) (86.2) (119.0) Other (12.0) (26.0) 28.4 Net cash provided (used in) 37.6 837.6 (509.6) investing activities Financing Activities: (Decrease)/ Increase in short-term (5.2) (445.2) 279.6 borrowing Proceeds from long-term debt 88.8 335.4 610.0 Payments of long-term debt (253.0) (1089.6) (183.4) Proceeds from sale of common 10.0 17.4 35.0 stock Purchase of treasury stock 0.6) (1.2) (37.6) Dividends paid (14.4) (52.0) Net cash provided by (used in) (160.0) (1197.6) 651.6 financing activities Effect of changes in foreign 0.2 2.2 (7.8) Exchange rates Increase (decrease) in cash 128.2 (179.2) 227.8 Cash at beginning of year 338.2 517.4 289.6 Cash at end of year 466.4 338.2 517.4Required: For each financial year, answer the following questions: a. State the firm's major sources and uses of cash. (4 marks) CONFIDENTIAL/6 FBA/PFS3263/APRIL21 b. Explain why cash flow from operations is greater than net income. (6 marks) C. Was the firm able to generate enough cash from operations to pay for all of its capital expenditures? (4 marks) d. What was the trend in net income and cash flow from continuing operations? (4 marks) e. Based on the evidence in the statement of cash flow alone, discuss the financial strength of the business. (4 marks)