A fellow student says to you: “The statement of cash fl ows is the easiest of the basic fi nancial statements to prepare because you know the answer before you start. You compare the beginning and...

A fellow student says to you: “The statement of cash fl ows is the easiest of the basic fi nancial statements to prepare because you know the answer before you start. You compare the beginning and ending balances in cash on the balance sheet and compute the net infl ow or outfl ow of cash. What could be easier?” Do you agree? Explain your answer.