Sowell has experienced an unbroken string of nine years of growth in net income. Nevertheless, the company is facing bankruptcy. Creditors are calling all of Sowell'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 flows.
Write a brief memo, in your own words, to explain to the managers of Sowell Enterprises, Inc., the purposes of the statement of cash flows.