Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 57

Purposes of the statement of cash flows
Financial statements all have a goal. The cash flow statement does as well.
Requirement
1. Describe how the statement of cash flows helps investors and creditors perform each of the following functions:
a. Predict future cash flows.
b. Evaluate management decisions.
c. Predict the ability to make debt payments to lenders and to pay dividends to stockholders.