SmartPages Media Corp. has experienced 10 years of growth in net income. Nevertheless, the business is facing bankruptcy. Creditors are calling all of SmartPages' loans for immediate payment, and the cash is simply not available. Where did SmartPages go wrong? Managers placed too much emphasis on net income and gave too little attention to cash flows.

Requirement 

Write a brief memo, in your own words, to explain to the managers of SmartPages Media the purposes of the statement of cash flows.