Project Description:

For this section of the portfolio, you will explain how to create and analyze a cash flow statement. Make sure to cover the following areas:

In your own words, provide a brief definition of a cash flow statement: what is it and what is it used for? Make sure to explain the three categories of cash flows included in the statement.

What are the direct and indirect methods of reporting cash flows? Explain the difference between them. What are the pros and cons of each method?

Create an example cash flow statement. This cash flow statement must be your ORIGINAL work. You may not use a cash flow statement from your textbook or any other source. The cash flow statement you create will be for the fictional company for which this training manual is being created.

How should a cash flow statement be analyzed? In other words, what information does it give us about the companys financial situation? Use the example cash flow statement you created to explain how this should be done.