Graded Homework

1. How can management use data from the cash flow statement to improve its management of cash?
2. As an investor, how will you use information from the cash flow statement?
3. How can management use the knowledge about the company’s operating cycle and data from the cash flow statement to control cash?

4. Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about a company’s operations?