1. What are the three categories into which inflows and outflows of cash are divided? Be sure to describe what is included in each of these three categories.
2. Why are companies required to report noncash investing and financing activities? How are these activities reported?
3. Why are direct exchanges of long-term debt for items of property, plant, and equipment included in supplementary information for the statement of cash flows even though the exchanges do not affect cash?
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