Solved: How does working capital relate to the operating cycle why, Accounting Basics

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How does working capital relate to the operating cycle why

Assignment

1. What is the purpose of a statement of cash flows?
2. How does it differ from a balance sheet and an income statement?
3. What is working capital?
4. How does working capital relate to the operating cycle?
5. Why is the distinction between paid-in capital and retained earnings important?
6. Of what use is the statement of cash flows?
7. Differentiate between investing activities, financing activities, and operating activities
8. How do you prepare a Balance Sheet?

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