Wgu c213 topic five - Study guides, Class notes & Summaries

why was the statement of cash flows created? - Answer-sometimes earnings fail, everything is one page, its a powerful forecasting tool sometimes earnings fail (net income) - Answer-- big loss scenario: earnings are too pessimistic (makes things look worse than they are) how to prepare a statement of cash flows when detailed cash flow information is not available? - Answer-a statement of cash flows can be prepared using knowledge of how the three primary financial statements articulate. Ope...