(a)[3]
State three ways in which a statement of cash flows differs from a cash budget.
(b)[9]
Prepare a statement that reconciles the profit from operations with the cash from operations for the year ended 31 December 2019.
(c)[7]
Prepare a statement of cash flows for the year ended 31 December 2019, beginning with cash from operations from (b).
(d)[2]
Discuss the effect on cash flow of an increase in general reserve during the year.
(e)[4]
Discuss whether the directors were justified in repaying part of the bank loan during the year ended 31 December 2019. Justify your answer.