What are the three sections of the cash flow statement? Give one example each of cash inflow and outflow for all three categories.

b) Why is it important to correctly classify cash inflows and outflows on the cash flow statement? Why do investors care? In other words, how do investors evaluate/interpret the different sections of the cash flow statement?

c) In the Greener Houses case, would your answer be any different if the entity chose to classify EAs as inventory rather than intangible assets?

d) In your opinion, are EAs more appropriately classified as inventory or as intangible assets? Why

Answer rating: 100% (QA)

a The three segments of the income explanation are 1 Operating Activities This part addresses cash inflows and surges from essential business activiti... View the full answer