Study Questions for Chapter 16 - Part I

Study Questions for Chapter 16 - Part I - In other words it...

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Study Questions for Chapter 16 – Part I Please read pages 710 through 715 I chapter 16 we learn about another tool that investors use to analyze a company. Up until now we have studied the income statement, the balance sheet, and the statement of retained earnings. Chapter 16 presents with the statement of cash flows, which is a required statement along with those mentioned above. 1. The statement of cash flow reports on the money (cash) that comes into a company and the money (cash) that goes out.
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Unformatted text preview: In other words, it summarizes everything that happens in the company’s cash account, including its beginning and ending balances and all the increases and decreases to cash. How is this different than what the income statement does? 2. The statement of cash flows reports changes to cash using three separate categories. What are these categories, and what kinds of things go into each category? What are noncash financing and investing activities and how are they reported?...
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