Susan Henderson, the vice president of marketing, was told by the CEO that she needs to understand the numbers because the company's existence depends on making money. It has been a long time since Susan took a class in accounting. She recalls that companies report net income and cash flows in two separate statements. She feels pretty com-

GENERAL MILLS, fortable with the income statement, but is somewhat lost looking at the statement of cash flows. She asks you to help explain this statement.

Required 

Write a brief memo to Susan explaining the form and content of the statement of cash flows, along with a short discussion of how to analyze the statement.