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Identify at least two financial situations that financial statement users can assess about an entity by...

Identify at least two financial situations that financial statement users can assess about an entity by using the Statement of Cash Flows
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First-- Balance of cash in the balance sheet does not give the financial statement users a clear picture of cash. Cash flow statement helps them to understand the movement oif cash in the period reported. Cash generated by operations is of great use to a user who wants to know the cash generating potential of the company. High cash balance is not an indicator of high performance of company. This could ony be analysed with cash flow statement.

Second— Financial statement user gets to know how much cash is used by the company in the Investing activities. Using cash for investing activities indicates that the company is working on expanding its business. This increases hopes of the financial statement user and investors.

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