How does the statement of cash flows aid analysts in the evaluation of a company's financial situation?

What will be an ideal response?

The statement of cash flows reports the inflows and outflows of cash for specific accounting periods. The statement is divided into operating, investing, financing and noncash sections. In general, analysts look for a positive cash inflow from operating activities. Companies must have enough cash coming from regular business operations in order to stay in business. A net cash outflow from investing activities shows that management of a company is investing in the future of the company. Cash inflows from financing activities indicate that a company is raising cash either from borrowing or from selling stock. Cash outflows from financing activities indicate that a company is either paying off debt, repurchasing treasury stock and/or paying dividends. The noncash section is reserved for significant exchanges of assets for non-cash financing.