• Prepare to discuss the importance of the Cash Flow Statement. Ensure the following points are addressed:
  • What are the three separate categories on the Statement of Cash Flows?
  • How do changes in the different categories affect the organization?
  • How does a statement of cash flow for operating activities adjust for non-cash items in both the balance sheet and income statement?
  • Compare cash flow statements for investment activities with those for financing activities.
  • Explain how cash flows are prepared using the indirect method.