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Question: 1 businesses from all walks of life are haemorrhaging cash...

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1.) “Businesses from all walks of life are haemorrhaging cash as the COVID-19 pandemic sweeps the globe.”

Explain what the statement above means in terms of its impact on ‘cash flows’ to be generated from operating, investing and financing activities. You may use a relevant example from your own community to answer this question.

2.) Explain the impact on cash flows of a build-up in inventory during this COVID - 19 pandemic and how can companies mitigate the financial impact? 

3.) “For those brave enough to act effectively now to stabilise and protect your business and maintain liquidity, opportunity will come.”

Explain whether the Statement of Cash Flows is able to illustrate the ‘liquidity’ of an entity to its users and provide ONE recommendation how companies can maintain liquidity during this COVID - 19 pandemic

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