Reply with at least 200 words citation and reference.
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.