Q6:

Describe how the cash flow statement helps investors and creditors perform each of the following functions: 1. Predict future cash flows. 2. Evaluate management decisions. 3. Predict the ability to make debt payments to lenders and pay dividends to shareholders. 4. Show the relationship of net income to cash flow. 1. The cash flow statement helps predict future cash flows by reporting cash which are good predictors of future cash flows. Describe how the cash flow statement helps investors and creditors perform each of the following functions: 1. Predict future cash flows. 2. Evaluate management decisions. 3. Predict the ability to make debt payments to lenders and pay dividends to shareholders. 4. Show the relationship of net income to cash flow. 1. The cash flow statement helps predict future cash flows by reporting which are good predictors of future cash flows. scribe how the cash flow statement helps investors and creditors perform each of the following functions: Predict future cash flows. Evaluate management decisions. Predict the ability to make debt payments to lenders and pay dividends to shareholders. Show the relationship of net income to cash flow. The cash flow statement helps predict future cash flows by reporting cash nich are good predictors of future cash flows