The Caribou Health Plan Is a For-Profit Organization

The Caribou health plan is a for-profit organization. The financial statements that Caribou prepares include balance sheets, income statements, and cash flow statements. To prepare its cash flow statement, Caribou begins with the net income figure as reported on its income statement and then reconciles this amount to operating cash flows through a series of adjustments. Changes in Caribou's cash flow occur as a result of the health plan's operating activities, investing activities, and financing activities. The basic formula for Caribou's income statement is

A) Cash Inflows - Cash Outflows = Net Cash Inflow (Outflow)
B) Revenues - Expenses = Net Income (Net Loss)
C) Sources of Funds - Uses of Funds = Net Change in Cash
D) Assets = Liabilities + Owners' Equity