Why Examine the Flow of Funds statement The flow of Funds statement n Includes important noncash transactions while the cash flow statement does not n Is easy to prepare and often preferred by managers for analysis purposes over the more complex cash flow statement n Helps you to better understand the cash flow statement, especially if it is prepared under the Indirect method 7-57-5 Why Examine the Flow of Funds Statement Includes important noncash transactions while the cash flow statement does not. Is easy to prepare and often preferred by managers for analysis purposes over the more complex cash flow statement Helps you to better understand the cash flow statement, especially if it is prepared under the Indirect method. The Flow of Funds Statement: