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What does it mean when investing activities are reported on the statement of cash flows? Provide three examples of investing activities. What does it mean when financing activities?are rep

  1. What does it mean when investing activities are reported on the statement of cash flows? Provide three examples of investing activities.
  2. What does it mean when financing activities are reported on the statement of cash flows? Provide three examples.
  3. Both the direct and indirect methods are used to prepare the cash flows. What is the difference between these two methods?
  4. What are the four building blocks of financial statement analysis? Explain the purpose of each one.
  5. What do these ratios tell us about a company?  How are they computed?
    • Working capital
    • Acid-test ratio
    • Current ratio
  6. Which type of analysis…
    • Measures key relationships between financial statement items?
    • Compares a company's financial condition across time?
    • Compares a company's financial condition to a base amount?
  7. What is the difference between comparative financial statements and common size comparative financial statements?

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