A Cash Flow Question will base on financial statements, Statement of Comprehensive Income & Statement of Financial position. In a Typical question SOCI & SOFP will be given with some relevant information and you are required to prepare Statement of Cash Flows for the year end.
Workings you are required to do are; Tax computations, Dividend Paid, Shares Issued, Increase / decrease in working Capital i.e. Inventory, Trade Receivables and Trade Payable. Statement of Cash Flows comprises of three main activities; Operating Activities, Investing Activities & Financing Activities.
Operating Activities involves cash generated from operations.
Investing Activities associated with sale & purchase of Non-Current assets.
Financing Activities are concerned with Investments and Equity Movement.