Describe one of the three activities reported on the statement of cash flows. Help Lucy explain to Marion how a company can show a profit on their income statement yet show little to no positive cash flow on their statement of cash flows. A statement of cash flows might be used by a company to make short-term and long-term plans and decisions. Explain one type of plan or decision that could be made by evaluating a company’s statement of cash flows.

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A:

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