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What is the purpose of a statement of cash flows

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1. What is the purpose of a statement of cash flows?

2. What are cash equivalents, and why are they included with cash on a statement of cash flows?

3. What are the three major sections on a statement of cash flows, and what type of cash inflows and outflows should be included in each section?

4. What general guidelines can you provide for interpreting the statement of cash flows?

5. If an asset is sold at a gain, why is the gain subtracted from net income when computing the net cash provided by operating activities under the indirect method?

Reference no: EM13893724

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