Question

what valuable information within the statement of cash flows is not readily available from either a balance sheet or income statement

Answer 1

1) Depreciation / Amortisations : The depreciation/amortisations figure are accumulated in the operating expenses so are not readily available for CFS. Thus the same is calculated through deducting opening balance of Accumulated Depreciation from closing balance of Acc. Depreciation.

2) Loss or profit on sale of assets: The loss or profit on sale of assets and the corresponding cash sale value of the sold assets is calculated by deducting or balancing the Assets account.

3) Purchase of assets: The purchase of assets figure is not available readily, so the same can be calculated by deducting opening assets balance from the closing assets balance.

4) Dividend paid : The dividend paid amount is not readily available in balance sheet or in income statement , so same is calculated through percentage of dividend payout ratio of the net income.

5) Increase or decrease in current assets or liabilities: The increase or decrease in current assets or liabilities are not readily available, so the same is calculated by deducting opening balance of the respective current asset from the closing balance of that asset.