This week's homework will have you putting together both an income statement along with a cash flow statement. Why do organizations need cash flow statements in addition to income statements? What makes cash flow statements important? Please take a look at the income statement and Statement of Cash Flows below and talk about why the a company needs both. Share any thoughts you have about specific things covered in the statement of cash flows that are not covered in the income statment and balance sheet. You may find the additional online resources below helpful. Be sure to share thoughts you have about operating, investing and financing activities and how they are different.

https://youtu.be/38WcNba0Ic0

https://youtu.be/KAOrqyzgYzA

https://youtu.be/Dt6ClHG34RM

https://youtu.be/TXmm2EV2QWg

https://youtu.be/xdCIksxKUdQ

https://youtu.be/jVdL_mVyJFQ

https://youtu.be/yTpHTQal8d4

ment of eaa appear as net profits The statement of cash flows uses data from the beginning- and end-of-period balance s ended Dx Raker Corporaof cash flows for the year ended December 35 Page from the income statement, along w Preparing the Statement of Cash Flows sheets. Ihe incom December 31 balance sheets for December 31 bal e statement for the t nd the December 31, 2013, a vely. The statement of cash flows as well as net profits taxes in Tables 4.4 and 4.5 (see facing respecti for Baker inflows ented in Table 4.6 (see page 124). Notee 31,201 ts after taxes and depreciation are treated as p at all cash TABLE 4.4 Sales revenue Less: Cost of goods sold Baker Corporation 2015 Income Statement ($000) $1,700 1,000 700 Gross profits Less: Operating expenses $ 230 100 S 330 $ 370 Selling, general, and administrative expense Depreciation expense Total operating expense Earnings before interest and taxes (EBIT) Less: Interest expense 70 Net profits before taxes $ 300 Less: Taxes (rate = 40%) 120 Net profits after taxes S 180 Less: Preferred stock dividends 10 Earnings available for common stockholders Earnings per share (EPS) S 170 $1.70 4Calculated by dividing the earnings available for common stockholders by the number of shares of common stock outstanding ($170,000+100,000 shares $1.70 per share)