Final answer:
The statement of cash flows reports on the net change in cash, the cash effects of operations, and investing transactions but does not include free cash flows. Free cash flow is a separate metric that measures the cash available after maintaining capital assets.
Step-by-step explanation:
The statement of cash flows reports all of the following except: c. the free cash flows generated during the period. The statement of cash flows is a financial statement that provides aggregate data regarding all cash inflows and outflows a company receives. It is divided into three main parts:
- Operating activities: This section shows the cash flow from the company's core business operations. It adjusts net income for the effects of non-cash transactions.
- Investing activities: This includes cash flows due to the purchase and sale of assets like equipment and securities, indicating the company's investment in its future operations.
- Financing activities: This section records cash inflows and outflows related to transactions with the company's owners or creditors, such as issuing bonds or paying dividends.
The statement of cash flows reports on the net change in cash for the period (a), the cash effects of operations during the period (b), and investing transactions (d). However, it does not typically present free cash flows, which is a performance metric often calculated separately from the statement of cash flows. Free cash flow is the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.