• What is the reporting objective of the Statement of Cash Flows?
• There are two methods used to prepare the statement. Name each method along with the uses and limitations between the methods.
• What steps should you use to prepare the statement?
• What are the components of the statement? Are they placed in a particular order? If so, why?
• Identify and explain the adjustment from net income to calculate cash flows from operating activities. In your answer, include the method and describe one component used in the calculation.