Intermediate Accounting 5 The Statement of Cash Flows Uses of statement of cash Flows The statement of cash flows helps users to assess-- The company's ability to generate positive future cash flows The company's ability to meet its obligations and pay dividends The companys need for external financing The reasons for differences between the company's net income and associated cash receipts and payments Both the cash and noncash aspects of the companys investing and financing transactionsUses of Statement of Cash Flows Intermediate Accounting 5 The Statement of Cash Flows The statement of cash flows helps users to assess-- ➢ The company’s ability to generate positive future cash flows. ➢ The company’s ability to meet its obligations and pay dividends. ➢ The company’s need for external financing. ➢ The reasons for differences between the company’s net income and associated cash receipts and payments. ➢ Both the cash and noncash aspects of the company’s investing and financing transactions