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

1.What is the cash flow statement and why is it an important consideration toboth the management, investors and creditors?

2. What is important differenceabout the purchase of plant and equipment in comparison to the purchase of inventory and other assetswith 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 periodof 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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