Chapter 12, Problem 3DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activity, and financial activity

Financial Activity:

Financial activity is the part of the cash flow statement. Financial activity involves the long term liability, borrowing and stockholder’s equity. All the changes in the long term liability, equity and borrowings reported in financial statement.