Learning ObjectivesAfter studying Chapter 9, you should be able to:•Explain the difference between the flow of funds (sources and uses of funds) statement and the statement of cash flows -- and understand the benefits of using each. •Define "funds" and identify sources and uses of funds. •Create a sources and uses of funds statement, make adjustments, and analyze the final results. •Describe the purpose and content of the statement of cash flows as well as implications that can be drawn from it. •Prepare a cash budget from forecasts of sales, receipts, and disbursements -- and know why such a budget should be flexible. •Develop forecasted balance sheets and income statements. •Understand the importance of using probabilistic information in forecasting financial statements and evaluating a firm's condition.