One of the purposes of a statement of cash flows is to determine a company's ability to pay its debts when they become due.

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One of the main objectives of a statement of cash flows is to provide information about a company's cash inflows and outflows during a specific period. By analyzing this information, investors, creditors, and other stakeholders can determine a company's ability to generate enough cash to meet its current and future obligations, including the payment of debts when they come due.

One of the Purposes of a Statement of Cash Flows