1. Explain in your own words why the cash flow Statement takes precedence over the Income Statement and Balance sheet as the primary measurement tool in financial management and analysis. Support your presentation with one or two credible references.
2. If cash flow is so important, why do we not submit all financial reports on a cash flow basis and avoid the trouble of preparing the Income Statement and or the Balance Sheet. Hint - consider what is the value added of the Income Statement and or the Balance Sheet?