Answer the following questions:1. Discuss three things one can learn from evaluating the cash flow statements of an entity. Explain why each of these is important for an analyst to understand in terms of the overall economic characteristics of a firm’s industry. Do not discuss items already addressed by your peers. In replies to peers, discuss whether you agree or disagree with the explanation provided by peers, and support your ideas by citing topic materials.2. The statement of cash flows provides information to assess the financial health of an entity. An entity with a healthy income statement is not necessarily financially healthy nor is an entity with healthy cash flows. Discuss other factors that must be considered when assessing the financial health of an entity and provide examples that illustrate each of the scenarios listed above. Use examples not already provided by your peers. In replying to peers, discuss additional factors that must be considered when evaluating the financial health of the entities discussed in the examples posted.
