Question

B Or A A EvE a) Mike Corporation. Accounts Department have compiled the following data for the year ended December 31st, 2019

b) State how the statement of cash flows helps investors and creditors perform each of the following functions: i. ii. Predic

22. ) Microsoft owns equity-method investments in several companies. Suppose Microsoft paid $1,000,00 acquire a 25% investmen

1. b) You are required to identify whether the following bonds will be issued at face value, a premium, or a discount: The ma



3. a) Big Auto Part Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2015, Big Part

Q4. The financial statements of NYC Inc. include the following items: Current Year Preceding Year Balance Sheet: Cash Short-t



LE loli Q4. The financial statements of NYC Inc. include the following items: Current Year Preceding Yea Balance Sheet: Cash.
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Answer #1

Answer to Q1

Part A

224000 Profit & Loss account of Mike Corporation for the year ended Dec 31st 2019 Particulars Amount Sales revenue Less: Expe

As an investor:

Cash flow statement shows the liquidity of the company that is whether the company is able to rotate the cash properly within its predefined cash cycle time. As an investor, cash flow shows about the amount of investments made in the new projects and the amount of shares or debts issued or borrowed which will help the investor to predict about the future cash flows. As the cash flow is nothing but the management   decision on where to invest, how to use vailable funds, how to raise funds, it will help investors to evaluate those investment decsions.

As a creditor:

Creditor mainly concerns on repyt of his dues which depends on liquidity of the business. Therefore it helps the creditor to determine the future cash flows of the entity and to decide whether the credit can be extended further or not.

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