Chapter 14.A, Problem 5P

To determine

Cash Flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is known as the cash flow statement.

Income statement: The statement in which the profit or the loss of a company is mentioned is called the income statement. In the income statement particulars such as revenues, expenses, net income and profit or loss are mentioned. It is also a statement which gives us the effect of expenses and profit in a stipulated time period.

Cash Flow: In a period of time the amount of cash disbursed or received in a particular activity is called cash flow.

Determine the total cash flows, operating cash flow and free flow cash flow of Rusco Company and determine the reason for decline in the total cash balance during this year.