Chapter 17, Problem 7Q

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.

Comparative balance sheet:

A comparative balance sheet represents the financial differences between the financial periods. The details of the accounts of assets and liabilities of the financial year are shown in the balance sheet.

To determine: The benefits of using comparative balance sheets, a current income statement, and certain transaction data in preparing a statement of cash flows.