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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
1. Prepare a statement of cash flows using indirect method for the year ended 31 December.2. The statement of cash flow is classified into three separate types of activities. Discuss how this design will help the users of cash flow statement to assess the cash flows of the Doha plc.3. Analyse (explain) all increase or decrease in the items in cash flow statement if any, indicating to the way that company used in managing its cash.4. Explain how Doha plc can have positive net income but negative cash flows.5. Doha plc company applied for a loan from QNB bank. Assume that you financial advisor to QNB and request you to give your opinion of the subject. To do so you have access to the financial statements of the company, and calculating certain financial ratios such as liquidity ratio and current ratio. After you finish all calculations, do you recommend to give the loan to the Doha company or not? Explain why in both cases.6. Regardless of the information provided above about the Doha plc company. Suppose that Doha plc company recorded net loss of QR 50000 (negative net income) for the year ended in 2013. Suppose the company recorded QR50000 in depreciation for the year, used up QR25000 of prepaid insurance expenses and wrote off QR35,000 of bad debts it knew it could never collect. what is amount of net cash flows from operating activities ? Is the net cash flows from operating activities positive or negative? Why support your answer with calculation.
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