Conceptual objectives:

1. Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed.

Analytical objectives:

1. Analyze the statement of cash flows and apply the cash flow on total assets ratio.

Procedural objectives:

1. Prepare a statement of cash flows.
2. Compute cash flows from operating activities using the indirect method.
3. Determine cash flows from both investing and financing activities.
4. Appendix 12A—Illustrate use of a spreadsheet to prepare a statement of cash flows.
5. Appendix 12B—Compute cash flows from operating activities using the direct method.