Question: 1. What is the cash flow statement and why is it an important consideration to both the management, investors and creditors? 2. What is important

1. What is the cash flow statement and why is it an important consideration to both the management, investors and creditors? 2. What is important difference about the purchase of plant and equipment in comparison to the purchase of inventory and other assets with the same characteristics 3. How would the firm determine the cost effectiveness of purchasing the long term assets used by the firm over an extended period of time? 4. Under what criteria would the management determine the risk and return of the purchase of long term capital assets to assure that the firm's long term value is increased

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