Conceptual

Explain the purpose and importance of cash flow information. Distinguish between operating, investing, and financing activities. Identify and disclose noncash investing and financing activities. Describe the format of the statement of cash flows.

Analytical

Analyze the statement of cash flows. Compute and apply the cash flow on total assets ratio.

Procedural

Prepare a statement of cash flows. Compute cash flows from operating activities using the indirect method. Determine cash flows from both investing and financing activities. Appendix 12A—Illustrate use of a spreadsheet to prepare a statement of cash flows. Appendix 12B—Compute cash flows from operating activities using the direct method.