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Bomber Ltd nas been experiencing difficult trading conditions over the last two financial years due to the current macro-economic conditions. The business has reported net profit in these two previous reporting periods, however the bank account had a credit balance in the ledger. During the financial year ending 30 June 2023, Bomber Ltd managed to borrow from the bank and issued shares to the general public and did not distribute anything to the shareholders. The CEO who does not have any accounting qualification believes that the cash position has improved, and the business is operating satisfactorily during the current reporting period (30 June 2023). The following are the summary of the net cash flow for the financial year ending 30 June 2023: Cash balance as at 1 July 2022 Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Cash balance as at 30 June 2023 ($600,000) ($520,000) $240,000 $800,000 ($80,000) Required: Discuss the importance of both cash and profit/loss in evaluating Bomber Ltd performance. Your discussion should include both advantages and disadvantages of using both cash and profit/loss for measuring performance.

Bomber Lta nas deen experiencing airficult traaing conaitions over the last two financial years due to the current macro-economic conditions. The business has reported net profit in these two previous reporting periods, however the bank account had a credit balance in the ledger. During the financial year ending 30 June 2023. Bomber Ltd managed to borrow from the bank and issued shares to the general public and did not distribute anything to the shareholders. The CEO who does not have any accounting qualification believes that the cash position has improved, and the business is operating satisfactorily during the current reporting period ( 30 June 2023). The following are the summary of the net cash flow for the finaticial year ending 30 June 2023: Required: Discuss the importance of both cash and profit/loss in evaluating Bomber Ltd performance. Your discussion should include both advantages and disadvantages of using both cash and profit/loss for measuring performance

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