Cash Flow Statement Q.1:- (a) Why cash flow statement is prepared? (b) The management of Poor Results Ltd. (PRL) is in the process of finalizing its financial statements. All matters are almost done, except the preparation of cash flow statement. You, being a financial consultant (FC) of PRL, are requested to assist and develop a such statement; details of which are as follows. Head of Accounts Cash Accounts Receivable Office Supplies Accrued Income Plant & Equipment Accumulated Depreciation - (Plant & Equipment) Land & Building Investment in bonds 31.12.08 42,000 50,000 25,000 42,000 300,000 (38,000) 200,000 370,000 31.12.07 50,200 62,000 16,000 20,000 260,000 (26,000) 263,000 340,000 Accounts Payable Accrued Utilities Long Term Loans Share Capital Retained Earnings 18,000 24,000 170,000 550,000 229,000 23,000 20,000 242,200 500,000 200,000 During the year PRL, declared and paid cash dividend of Rs.32,000 Required:- Prepare cash flow statement using any method