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1. What does it mean when investing activities are reported on the Statement of Cash Flows? Provide three examples of investing activities 2. What does

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1. What does it mean when investing activities are reported on the Statement of Cash Flows? Provide three examples of investing activities 2. What does it mean when financing activities that are reported on the Statement of Cash Flows? Provide three examples. 3. Both the Direct and Indirect Methods are used to prepare the Cash Flow Statement. What is the difference between these two methods? 4. How do you determine a company's cash flow from their operating activities using the Indirect Method? 5. What are the four (4) building blocks of financial statement analysis? Explain the purpose of each one. 6. What is the purpose of each of the following ratios and how are they computed? a. Working capital b. Acid-test ratio c. Current ratio 7. What do these ratios tell us about a company Who are the intended users of these ratios? 8. Which type of analysis... a. Measures key relationships between financial statement items? b. Compares a company's financial condition across time? c. Compares a company's financial condition to a base amount? 9. What is the difference between comparative financial statements and common size comparative financial statements? 10. What is the criteria for cash flows to be classified as a cash equivalent

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