I. Explain how the depreciation percentages are determined by using the MACRS recovery periods.

II. Describe the overall cash flow through the firm in terms of cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities

III. Describe the general format of the statement of cash flows. How are cash inflows differentiated from cash outflows on this statement?

IV. Explain why a decrease in cash is classified as a cash inflow (source) and why an increase in cash is classified as a cash outflow (use)in preparing the statement of cash flows.