Lil’ Pals Pet Photography is a mobile photography studio specializing in taking beautiful pictures of very special family members—pets. The mobile studio comes to the customers’ homes or local vet clinic, pet store, groomer, or grocery store. Pictures are taken on-site in the mobile studio using the latest in modern digital photography technology. Customers can review their pictures and place an order immediately after the photo shoot. Customers pick up the pictures in a few days at the host location.
The owners of Lil’ Pals Pet Photography can review their income statement to determine their net profit for the year, but what statement do the owners use to understand the sources and uses of cash? What type of information is provided on this statement?