Intermediate Accounting, Thirteenth Edition

Chapter 23. STATEMENT OF CASH FLOWS

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

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Don't Take Cash Flow for Granted

Investors usually look to net income as a key indicator of a company's financial health and future prospects. The following graph shows the net income of one company over a seven-year period.

The company showed a pattern of consistent profitability and even some periods of income growth. Between years 1 and 4, net income for this company grew by 32 percent, from $31 ...