How Does the Statement of Cash Flows Help External Users

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Examlex · Accepted Answer

The Answer is The statement of cash flows provides external users with information with which to make educated decisions. It helps them assess a company's:
1) ability to generate positive future cash flows from operations
2) ability to meet its obligations
3) use of cash for capital expenditures and investments
4) capital raised from external financing sources and repayments of external financing
5) differences between the company's net income and associated cash receipts and payments
6) uses of cash to pay dividends, repurchase shares of stock

How Does the Statement of Cash Flows Help External Users

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