There are two methods for preparing the Statement of Cashflows, what are they? If you were a potential investor in a company, or a banker that is considering providing a loan to a company, why might your make more use out of the Statement of Cashflows versus the other financial statements? Pictures provides the Income Statement, the Balance Sheet, and Additional Information for a company. It should be a minimum of 500 words.

Assets Cash Accounts Receivable Merchandize inventory Property, plant, and equipment Accumulated depreciation Total 2012 2011 234,000 124,689 145,643 225,431 89,000 134,567 209,354 124,354 (45,678) (23,456) 632,319 585,585 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 67,000 23,124 105,000 175,658 261,537 632,319 45,000 56,322 125,000 114,263 245,000 585,585 Kaneohe Raingear & Canopy, Inc. Income Statement For the Year Ended December 31, 2012 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 546,780 367,854 178,926 56,789 35,000 91,789 87,137 7,600 79,537 23,000 56,537 Additional Information: 1. Dividends declared and paid were: 2. During the year equiment was sold for: 3. The equipment sold, in 2. above, cost: 4. The equipment sold, in 2. above, had a book value of: 5. Depreciation expense was: 6. Equipment was purchased for: $ 40,000 $ 56,000 $ 65,000 $ 25,000 $ 62,222 $150,000 The following data was taken from the records of Marine Supply, Inc. for the year ending December 31, 2012. Raw Materials Inventory 1/1/2012 Raw Materials Inventory 12/31/2012 Finished Goods Inventory 1/1/2012 Finished Goods Inventory 12/31/2012 Work-In-Process Inventory 1/1/2012 Work-In-Process Inventory 12/31/2012 Direct Labor Indirect Labor Accounts Receivable Factory Insurance Factory Machinery Depreciation Factory Utilities Office Utilities Expense Sales Sales Discounts Plant Manager's Salary Factory Property Taxes Factory Repairs Raw Materials Purchases Cash $ 67,908 $ 134,589 $ 243,567 $ 188,342 $ 78,000 $ 98,000 $ 245,000 $ 100,000 $ 865,433 $ 18,900 $ 23,459 $ 10,346 $ 7,500 $ 2,345,132 $ 90,000 $ 230,000 $ 57,989 $ 5,400 $ 86,543 $ 132,543 Mind-O-Matic, Inc's production and cost data for the Capping Department for January 2012 are presented below. Prodution Data Beginning work in process units Units started into production Ending work in process units Percentage complete - ending inventory January 0 75000 10000 15% Cost Data Materials Labor Overhead January $ 670,000 $ 196,000 $ 125,000 $ 991,000