Response to the following questions:
1. What are "cash equivalents"? How does a company's reporting on its cash and cash equivalents affect the statement of cash flows?
2. What are the three categories of a company's inflows of cash? What are the three categories of a company's outflows of cash?
3. Starting with the basic accounting equation, derive a set of equations that show the relationship between increases (decreases) in cash and increases (decreases) in assets other than cash, liabilities, and stockholders' equity.