Chapter 11, Problem 5RQ

To determine

Cash flow statement:

Statement of cash flows is a statement showing the source and application of cash between two balance sheet dates. It shows how the cash is sourced and used for the company’s operating, investing, and financing activities.

Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

To describe: The basic format of cash flow statement.