Why is the Statement of Cash Flows so important? Why do outside parties rely on it so much?

On the cash flow statement cash inflows are shown as __________ while cash outflows are shown as _________.

What do you need to prepare a cash flow statement?

Describe the three cash flow categories, give the general account rule for what types of accounts go in each category, and provide example line items for both cash inflows and cash outflows.

Operating Activities

How do you determine cash flow provided by (used in) operating activities using the indirect method?

How is cash flow provided by (used in) operating activities determined using the direct method? How is this different from the indirect method?

Investing Activities

How do you determine cash flow provided by (used in) investing activities?

Financing Activities

How do you determine cash flow provided by (used in) financing activities?

What is the formula to calculate change in cash flow?

What are the steps to prepare the cash flow statement?

Explain the difference between the direct and indirect method.

What are some considerations that should be made when evaluating cash flow?