Question: The final financial statement is the statement of cash flows. Cash is so important to an organization and
As can be determined from the title, this statement provides a picture of the various ways in which the company
generated cash during the year and the uses that were made of it. How is the statement of cash flows structured?
Answer: Outside decision makers place considerable emphasis on a company’s ability to create significant cash
inflows and then wisely apply that money.“Statement of Cash Flows” presents an example of that
information in a statement of cash flows for Davidson Groceries for the year ended December 31, 2XX4. Note that
all the cash changes are divided into three specific sections: operating activities, investing activities, and financing