Chapter 12, Problem 7Q

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: The necessary to use comparative balance sheet, income statement and certain transaction data in preparing statement of cash flows.