This is one assignment but with two parts on the first part I only want 3 pages or 750 word count and on the second part only 2 pages or 500 word count

PART A
A. Definition of balance sheet, income statement and statement of cash flows
The financial statement of any entity comprises of balance sheet, profit and loss account and cash flow statement which provides overall financial condition and performance of the entity. Each statement has its own importance and serves the needs of the users of the financial statement. The income statement of the entity reveals the financial performance of the entity i.e. profit generated by the entity be analyzing the revenue and expenses of the entity. Further the balance sheet of the entity reveals the financial position of the entity such as analyzes the assets, liabilities and equity of the entity (Woodruff, Jim. 2018). The cash flow statement of the entity describes the cash position of the entity by revealing the cash inflows and cash outflows for the entity.
B. Relation of cash flow statement with the balance sheet and income statement
The cash flow statement is related to the income statement and balance sheet of the entity. The net income is the first line item of the cash flow statement which is the bottom line of the income statement. Further the non-cash expenses and non-cash income included in the income statement such as depreciation, bad debt expenses and others affects the cash flow statement and adjusted to the net income to derive cash flow from operations. Similarly the balance sheet item which is having the impact on the cash such as change in the working capital, fixed assets and financing are connected with the cash flow either as the source of the cash or as a use of cash. Similarly the net change in the cash position and opening balance of the cash together reveals the cash balance described in the balance sheet of the entity (Kimball, Tara).
C. Importance of cash flow statement to investors:
The cash flow statement is very vital for the investors and shareholders such as it enables the investors to use the historical cash flow of the entity in order to make projections regarding the future cash flows and the investment decision is based on such analysis. Further it depicts the change in the balance sheet and helps in the analysis of the operating, investing and financing activities of the entity. It also provides the insight about the liquidity and solvency condition of the entity and shows the financial position of the entity. It also provides the information in relation to the cash generation ability of the entity and also helps in analyzing the quality of earnings. It also helps in predicting the timing and uncertainty of the future cash flows.
D. Analysis of the operating activities at ABC Company
The entity is generating positive cash flow from the operating activities...