1. As part of the year-end accounting process for your company, you are preparing the statement of cash flows according to GAAP. One of your team a finance major, believes the statement should be prepared to report the change in working capital, because analysts many times use working capital in ratio analysis. Your supervisor would like research conducted to verify the basis for preparing the statement of cash flows.Access the FASB Codification at https://asc.fasb.org/home to conduct research using the Codification Research System to prepare responses to the following items. Provide Codification references for your responses.
(a) What is the primary objective for the statement of cash flows? Is working capital the basis for meeting this objective?
(b) What information is provided in a statement of cash flows?
(c) List some of the typical cash inflows and outflows from operations.