1. List the three sections of the Statement of Cash Flows and
briefly explain what activities are included in each section.
2. What can creditors, investors, and other users learn from the
analysis of the cash flow statements?
3. Explain why depreciation expense, depletion expense, and
amortization expense are added to net income in the operating
activities section of the statement of cash flows when using the
indirect method.
4. Leather Shop earned net income of $57,000 after deducting
depreciation...