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Why companies required to prepare a statement of cash flows

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Reference no: EM131866971

Question -

1- Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?

2- Two popular methods of financial statement analysis are horizontal analysis and vertical analysis. What are the differences between these two methods?

3- Why do corporations buy back their own stock? What does it tell you about the corporation? What effect does the purchase have on the price of a company's stock?

At least 250 words for the answers of each question.

Reference no: EM131866971

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