WEEK SIX QUESTIONS

WEEK SIX QUESTIONS

1. What is the purpose of a statement of cash flows?

2. How does it differ from a balance sheet and an income statement?

3. What is working capital?

4. How does working capital relate to the operating cycle?

5. Why is the distinction between paid-in capital and retained earnings important?

6. Of what use is the statement of cash flows?

7. Differentiate between investing activities, financing activities, and operating activities

8. How do you prepare a Balance Sheet?

ANSWER EACH QUESTION IN 200 OR MORE WORDS.

USE CITATIONS AND REFERENCES FOR EACH.