Explain the reasons why a cash flow statement is important to West ltd.

The Statements of Financial Position of West Ltd tiff the past two years are set out below:

Requirement:

1. Prepare Cash Flow Statement for West Ltd for the year ended 31st October 2019 in accordance with the relevant standard IAS7.

2. Explain the reasons why a cash flow statement is important to West ltd. 500 words
(Prepare a written explanation of the role of the cash flow statement in linking profit made with changes in assets and liabilities. Show a summary of the cash flows into and out of an organisation, during the accounting period. The relationship between profit and cash should be defined clearly.

3. Discuss the importance of the different elements of West ltd cash flow statement.

(Consider the importance and contents of operating cash flows, investing cash flows and financial cash flows. Also emphasise the cash flow statement`s role in an organisation`s liquidity, given the link between liquidity and survival. 600 words.

4. Comment on the strengths and weaknesses for West ltd financial position using a cash flow statement.