B.C. Plating Inc. has experienced an unbroken string of 10 years of growth in net income. Nevertheless, the company is facing bankruptcy. Creditors are calling all B.C. Plating's loans for immediate payment, and the cash is simply not available. It is clear that the company's top managers overemphasized profits and gave too little attention to cash flow.
Requirement
Write a brief memo, in your own words, to explain to the managers of B.C. Plating the purposes of the statement of cash flows.