Requireda. Prepare a worksheet for the preparation of a statement of cash flows
Requireda. Prepare a worksheet for the preparation of a statement of cash flows for Fuso Pharmaceutical Industries for each of the years ending March 31 Year 2 to Year 4. Follow the format of Exhibit 3.13 in the text. Notes to the financial statements indicate the following:(1) The changes in Accumulated Other Comprehensive Income relate to revaluations of Investments in Securities to market value. The remaining changes in Investments in Securities result from purchases and sales. Assume that the sales occurred at no gain or loss.(2) No sales of property plant and equipment took place during the three-year period.(3) The changes in Other Noncurrent Assets are investing activities.(4) The changes in Employee Retirement Benefits relate to provisions made for retirement benefits net of payments made to retired employees both of which the statement of cash flows classifies as operating activities.(5) The changes in Other Noncurrent Liabilities are financing activities.b. Prepare a comparative statement of cash flows for Year 2 Year 3 and Year 4.c. Discuss the relation between net income and cash flow from operations and the pattern of cash flows from operating investing and financing transactions for Year 2 Year 3 and Year 4.
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