1. What is the purpose of a statement of cash flows? 
2. Explain in your own words how the statement of cash flow can be helpful to a business.
3. What are the three major sections on a statement of cash flows, and what type of cash inflows and outflows should be included in each of these three sections?
4. Assume that a company repays a $300,000 loan from its bank, and then later in the same year they borrow another $500,000. In what section does this transaction belong, and what dollar amount(s) appear on the statement of cash flows?

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Ans 1 2 Statement of cash flows is prepared to know the sources and uses of the cash It provides t... View the full answer