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Why classify items? What is reasonable working capital?

Why do you think it is important to segregate operating, investing and financing activities in cash flow statement?

Why do you think classified balance sheet is important?

What do you think should be the reasonable amount of working capital?

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Why do you think it is important to segregate operating, investing and financing activities in cash flow statement?

Yes. The investing and financing transactions have particular importance and so they should be reported separately from the operating cash flows. Investing and financing transactions are typically multi-year events and/or permanent changes in the financial complexion of the firm. That is, investing in a 15 year asset has implications for 15 years. Issuing stock is something that can impact a firm forever. ...

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Your tutorial is 328 words and no references (just my opinion).

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