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Amit had successfully run his cafe business for three months and was looking to improve sales performance. He also wanted to leverage on other alternative sources of revenue generation. He wanted to spend more on advertising and marketing activities to improve total sales. But before going ahead with his decision, Amit wanted to determine the cash balance available with him. The present case study can be helpful in understanding: the concept of cash flows, purpose of cash flow analysis, the purpose of preparing a cash flow statement for analyzing cash flows from different activities.