Problem
Answer these there questions with your own words.
1- What is the purpose of a statement of cash flows? How does it differ from a balance sheet and an income statement?
2- Net income for the year for Carrie, Inc. was $850,000, but the statement of cash flows reports that cash provided by operating activities was $960,000. What might account for the difference?
3- Differentiate between operating activities, investing activities, and financing activities.