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Describe the three major activities the statement of cash flows reports
Describe the three major activities the statement of cash flows reports. Cite examples of cash flows for each activity.
Expert Solution
The three major activities on the statement of cash flows report are:
1) Cash flows from operations, examples include changes in working capital accounts and adding back depreciation.
2) Cash flows from investing, examples include buying or selling capital expenditures.
3) Cash flows from financing, examples include obtaining a loan or distributing cash dividends.
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