The statement of cash flows is one of the four primary financial statements.
1. Describe the content and layout of a statement of cash flows, including it three sections.
2. List at least three transactions classified as investing activities in a statement of cash flows.
3. List at least three transactions classified as financing activities in a statement of cash flows.
4. List at least three transactions clssified as significant noncash financing and investing activities in the statement of cash flows.
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1. The cash flow statement is partitioned into cash flow resulting from operating activities, cash flow resulting from investing activities, and cash flow resulting from financing activities.
Operating activities include the production, sales and delivery of the company's product as well as collecting payment from its customers. This could include purchasing raw materials, building inventory, advertising and shipping the product.
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