DE 17-20 Link Back to Chapter-Opening Story. A friend is a stockholder in MotherNature.com and has received the company's statement of cash flows, which follows. as adapted. Answer the following questions to help your friend understand this financial (Obj. 5) statement and its purpose. MOTHERNATURE.COM, INC Statement of Cash Flows (adapted) Year Ended December 31, 1999 Operating Activities: Thousands Net loss.... Adjustments to reconcile net loss to net cash used in operating activities. Net cash used in operating activities. Investing Activities: Purchases of property and equipment S(159) 79 (80) (28) Financing Activities: Borrowing. Issuance of common stock Payments of debt Net cash provided by financing activities Increase in cash and cash equivalents. Cash and cash equivalents, beginning 89 25 (3) 111 $ 3 1 4 Cash and cash equivalents. ending.. 1. What does the statement of cash flows reveal that you cannot learn from the income statement and the balance sheet? 2. MotherNature.com's statement indicates that the company uses the indirect method to report cash flows from operating activities. When you see other cash-flow statements. how can you tell that the company uses the indirect method? 3. Do MotherNature.com's cash flows for 1999 look strong or weak? Give your reason.. What is the main thing you should look for in evaluating a company's cash flows?