Question 2

As at 31^st December Team Ltd had the following summarised financial statements:

Notes:

There were no disposals of fixed assets

There were no additions or disposals of Intangible assets. Profits before tax interest and depreciation is after charging amortisation.

A dividend was paid in the year

(a) Prepare a statement of cash flows for the year ended 31^st December 20x2 in accordance with IAS7 using the indirect method to calculate the operating cash flows.

(b) Explain why the cash flow statement is important to an investor

Question 2 As at 31st December Team Ltd had the following summarised financial statements