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1 . Why does the cash flow statement have to equal the change in the cash account? 2 . Why are gains and losses on

1. Why does the cash flow statement have to equal the change in the cash account?
2. Why are gains and losses on disposal of assets treated as adjustments to the cash flows from operations but the cash part of the transaction is a source of funds under investing? Shouldnt it all go under one section?
3. Why cant we assume that a company is financially healthy and liquid if it has a positive cash flow?

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