Analysis of Cash Flow Statement

问题如下：

Which of the following is the first step in the cash flow statement analysis?

选项：

A.

Evaluating the major sources and uses of cash flow.

B.

Identifying the primary determinants of investing cash flow.

C.

Calculating the free cash flow.

解释：

A is correct.

Evaluation of the cash flow statement should involve an overall assessment of the sources and uses of cash between the three main categories as well as an assessment of the main drivers of cash flow within each category, as follows:
1 Evaluate where the major sources and uses of cash flow are between operating, investing, and financing activities.
2 Evaluate the primary determinants of operating cash flow.
3 Evaluate the primary determinants of investing cash flow.
4 Evaluate the primary determinants of financing cash flow.