Chapter 14, Problem 11RQ

To determine

Statement of Cash Flows: It is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It determines the net changes in cash, through reporting the sources and uses of cash due to operating, investing, and financing activities of a company.

These are the three main categories of the statement of cash flows as shown below in the figure.

Categories of cash flows statement

Figure (1)

To Determine: The evaluation of balance sheet accounts for the preparation of investing activities in the cash flow statement.