Chapter 12, Problem 4Q

(a)

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Type of activities reported in statement of cash flows:

Figure (1)

To Describe: Major sources (inflows) of cash in statement of cash flows.

(b)

To determine

To Describe: Major uses (outflows) of cash in statement of cash flows.