Answer the following Questions: 1. Using an example, explain in your own words the function of a statement of cash flows. Why is it prepared? What does it communicate to the reader of financial statements? What is its advantage over a statement of financial position? over an income statement? 2. Why are financing and investing activities of a corporation important to financial statement readers? 3. How does an increase in accounts receivable during the year affect the cash flow from operating activities? 4. Is a statement of cash flows really only a summary of cash receipts and disbursements recorded in the corporation's Cash account? 5. What effect does the declaration of a cash dividend have on cash flow? the payment of a dividend declared and paid during the current year? the payment of a dividend declared in the preceding year