Please respond to the following:

• 1. Discuss decisions made using the statement of cash flows versus decisions made using the income statement. Why is the statement of cash flows a required statement? Identify and discuss three significant observations that can be made about a company by analyzing the cash flow statement.
• 2. The adjusted trial balance is the source of information for preparing all financial statements other than the statement of cash flows. Please discuss the sources of information used to prepare the statement of cash flows and the information provided by each source.