(b) $3,000 (c) $2,000 (d) ($2,000) STUDY QUESTIONS AND PROBLEMS 4.1. Why is the statement of cash flows a useful document? 4.2. Define the following terms as they relate to the statement of cash flows: cash, operating activities, investing activities, and financing activities. 4.3. How does the direct method differ from the indirect method? 4.4. What can creditors, investors, and other users learn from an analysis of the cash flow statement