Question

2.)

List at least 5 different items that belong on each of the three sections of the Statement of Cash Flows and state whether it would increase or decrease cash (15 total items).  

3.)

List at least 5 solvency ratios, 5 liquidity ratios, and 5 profitability ratios, showing the formula for each and a brief explanation of why they are useful.  

Answer 1

Dear student , I am answering here the first question. that is Q no 2.

List of items on each of the three sections of the Statement of Cash Flows:

A	Cash flows from Operating Activities :	Infolw of cash / outflow of cash	Increase cash/ decrease cash
1.	cash recepits from Sales of Goods	Inflow	Increase
2.	cash payment for Purchases of Goods	outflow	Decrease
3.	Cash paid for expenses	outflow	Decrease
4.	cash receipt for other incomes	Inflow	Increase
5.	Income tax paid	outflow	Decrease
B	Cash flows from Financing Activities :
1.	Issuing Share capital	Inflow	Increase
2.	Issuing Debenture or bonds	Inflow	Increase
3.	Dividend paid	outflow	Decrease
4.	Loan taken from bank	Inflow	Increase
5.	repayment of loan	outflow	Decrease
C	Cash flows from Investing Activities :
1.	Purchase of Fixed Asset	outflow	Decrease
2.	Sales of Fixed Assets.	Inflow	Increase
3.	Purchase of investments	outflow	Decrease
4.	Sales of investments	Inflow	Increase
5.	Dividend received	Inflow	Increase

finish.