Which of the following statements is false?

(a) Firms only have financial difficulties when both the net income and cash flow from operations are negative.

(b) The statement of cash flows shows how cash has been generated and how it has been used for an accounting period.

(c) Understanding how to prepare a statement of cash flows helps the analyst to better understand and analyze the cash flow statement.

(d) The statement of cash flows is prepared by calculating changes in all balance sheet accounts.