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

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Describing the purposes of the statement of cash flows

Financial statements all have a goal. The statement of cash flows does as well. Describe how the statement of cash flows helps investors and creditors perform each of the following functions:

  • Predict future cash flows.
  • Evaluate management decisions.
  • Predict the ability to make debt payments to lenders and pay dividends to stockholders.

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