Essay
The following information is produced on an accrual basis and relates to Emily's Superior Photo Framers.
Statement of comprehensive income for the year ended 31 December 2018 
Additional Information:
• Emily withdrew $25,000 through the year for her own use.
• No photo framing equipment was sold during the year.
REQUIRED:
a)Prepare a classified statement of cash flows for the year ended 31 December 2018 from the above information. Show all workings.
b)Prepare a statement reconciling profit with cash flow from operating activities.
c)Comment on what the statement of cash flows reveals about the cash situation of Emily's Superior Photo Framers.
Correct Answer:
Verified
Workings 
c)
Decrease in bank balance
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Correct Answer:
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c)
Decrease in bank balance
O...
View Answer
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