Instructions

• Prepare a response to the following research activity.

Activity

Your friend and colleague has been working for about a year since graduating from university. He has come to you for advice on his saving and spending habits. You have accumulated the following information on his savings and spending that has occurred over the past year:

Instructions

1. Prepare a statement of cash flow for your friend from information provided above using the direct method.

2. Can you provide some advice to your friend on how he could improve his cash flow strategies, such as managing debt levels and terms of payment?