U.S. Plating, Inc., has experienced an unbroken string of 10 years of growth in net income. Nevertheless, the company is facing bankruptcy. Creditors are calling all of U.S. Plating's loans for immediate payment, and the cash is simply not available. It is clear that the company's top managers overemphasized profits and gave too little attention to cash flows.

Required

Write a brief memo, in your own words, to explain to the managers of U.S. Plating, Inc., the purposes of the statement of cash flows.