S12-2 (Learning Objective 1: Explain the purposes of the statement of cash flows) Bryant, Inc., has experienced an unbroken string of nine years of growth in net income. Nevertheless, the company is facing bankruptcy. Creditors are calling all of Bryant Solution The term cash flows refers to the receipts and payments of cash. Companies periodically prepare a statement to disclose the cash flows arising from various activities in the form of a statement. That statement is known as statement of cash flows (or cash flow statement). The statement of cash flows (SCF) is an important financial statement that shows the details of the company .