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“The Slater & Gordon case is proof that the Cash Flow Statements is the only part of the financial statement that provides an early warning sign of the company’s financial trouble.”

Required:

Do you agree or disagree with the statement above? Using the AREA framework, respond to this statement and give your reasons why. Cite examples to support your response.

ANALYSE: (30-50 words): Identify the issue and why it matters. Determine what you need to find out.

RESEARCH: (200-250 words): Present relevant facts and evidence, or issues.

EVALUATE & ANSWER: (200-250 words): Provide your opinion of the themes or issues you have identified, justified by the evidence you have gathered and evaluated.

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