- What is the basic structure the cash flow statement? Study Question #4 - Define financing activities in your own words. Your Answer: Study Question #5 - When computing cash flows from operating activities, what financial statement do you need to use? And what specific items do you need from each? Hint: simply state the financial statements you need and list the items you need from each. Your Answer: Study Question #6 - Why do you need net income to begin preparing the cash flow statement? Study Question #7 - Why do you add back depreciation and amortization expenses when computing operational cash flows? Your Answer: Study Question #8 - When two years of balance sheet data show an increase in non-cash current assets, does this indicate cash has increased or decreased? Why or why not? Your Answer: Study Question #9 - When two years of balance sheet data show an decrease in current liabilities, does this indicate cash has increased or decreased? Why or why not? Your Answer: Study Question #10 - In your own words, what is the cash flow used for? Why do we need this information and what does it tell us? Your Answer: