A friend of yours is taking an elementary accounting course. He says, “I understand the income statement and balance sheet, but I am confused by the statement of cash flows (and accompanying schedule). What is this statement, what is it useful for, what are its major sections, and what items are reported in each section and the accompanying schedule? I need to understand this statement better so I can do well in my class.”
Required
Prepare a written response to your friend’s questions.