Answer:
The simple analogy to creating a cash flow statement is analyzed below.
Step-by-step explanation:
The cash flows statement is comprised of three sections: operating activities, investing activities, and financing activities.
The indirect method of preparing a statement of cash flows begins with the net profit from the income statement, which is then adjusted for non-cash items, such as depreciation.
Prepare—Gather Basic Documents and Data.
Step 2: Calculate Changes in the Balance Sheet.
Step 3: Put Each Change in B/S