E17-1 Morningstar Foods, a bakery partnership in South Carolina, has experienced an unbroken string of ten years of growth in net income. Nevertheless, the business is facing bankruptcy! Creditors are calling all of Morningstar's outstanding loans for immediate pay- mem, and the cash is simply not available. Attempts to explain where Morningstar Foods went wrong make it clear that managers placed undue emphasis on net income and gave too little attention to cash flows. Required Write a brief memo, in your own words, to explain to the managers of Morningstar Foods the purposes of the statement of cash flows.