1. What is the purpose of the Statement of Cash Flows? 2. What are the three major classifications of cash flows in the Statement of Cash Flows? If you could pick, which one would you prefer your company used to generate cash? Why? 3. Under which classification of cash flows would each of the below be put if you were preparing a statement of cash flows? -Sale of a building -Pay off a loan -Sale of food -Purchase inventory -Pay GM salary -Buy a plot of land -Take out a loan -Collect accounts receivable -Took a depreciation expense for a building 4. Describe how each of the below activities would impact a company's cash (example answer: "Cash would increase by $3,000"): -Inventory increased by $2,000 -Accounts receivable decreased by $3,000 -Prepaid expenses increased by $1,000 -Equipment was sold for $4,000 -Current liabilities increased by $8,000 -Long-term debt decreased by $5,000