The Statement of Cash Flow is divided into three sections: operating activities, investing activities and financing activities.
Operating Activities: cash flows from operating activities details flows arising from the normal and regular business operating of the company. It includes items such as cash-based revenue, cash-based expenses, changes in working capital, etc.
Investing Activities: cash flow from investing activities details flows spent on investment assets or earned from sale of investment assets. It includes cash spent on acquiring new plant and machinery, as well as cash realized from the sale of existing assets.
Financing Activities: cash flows from financing activities details cash realized from capital providers as well as returns to them. It includes flows from new equity and debt issuance, dividends and interests paid to capital providers, etc.
b. The potential value of including specific goal tracking.
Explanation:
Top cash model is the one which prioritizes the cash value as compared to the product features. The potential value of a product is identified and then the price for the product is set. This creates value for money for customers.
Price index is used to measure how price change over a period of time. Price index is used to measure inflation. An example of a price index is the consumer price index. The consumer price index measures changes in the price of a basket of goods.
Price index in year 2 = ( 1 + inflation rate) x price index in year 1
