Chapter 17, Problem 22Q

To determine

Cash Flow Statement:

Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the cash inflows or the cash receipts of a business and the cash outflows or cash payments for a specific period of time. The cash flow statement also provides information regarding the net cash change that occurred during a period, classifying the activities into three categories those are cash from operating activities, investing, and financing activities.

To determine: The reason why it is advantageous to use a worksheet when preparing a statement of cash flows and if a worksheet is necessary while preparing a statement of cash flows.