Question 1: What information can a user of financial information obtain from the statement of cash flows and which method of reporting do you prefer? What are the three major activities presented in the statement? Provide examples of each of the activities.
Question 2: Is it possible to have a positive net income and negative cash flow from operations? If your answer is no, explain fully. If your answer is yes, provide two examples when one might find this.
Question 3: Is it possible to have a negative net income and positive cash flow from operations? If your answer is no, explain fully. If your answer is yes, provide two examples when one might find this.