This chapter is about expanded analysis, which goes beyond the financial statements and their ratios.Please answer these questions?

Please answer these questions: 1) What is statement of cash flow? Why do we need to have such a statement, with balance sheet and income statement having been provided? 2) What are the three segments of statement of cash flows? Why is operating activity part the most important, and used in analysis? 3) What are the two methods to compose a statement of cash flow? Explain the major differences between them, and their advantages and disadvantages. 4) What are the major ratios using operating cash flows? What are their relationships with those related only to income statement and balance sheet? 5) What are the top five most used ratios? Explain from your knowledge of financial reporting why these ratios are widely used. 6) What is conservatism? Why some experts use conservatism as the indicator of quality of earnings? Give a couple of examples to illustrate your points. 7) It is always difficult to forecast financial failure. What are the major univariate model and multivariate model? Interpret the variables used in these models. Note: You will need to know how to calculate Altman model and interpret the results. 8) LIFO reserves are used by companies that use LIFO inventory method. Explain why LIFO reserves can affect earning quality