Purpose of cashflow statements are to analyse the different cashflows generated by the firm(hospital) into a) Operating cashflows: The cashflows(inflows/outflows) from operating activities of the hospital i.e providing services to patients from consulting, scanning, nursing and so on. b) Financing activities: Inflows/outflows which involve in raising funds to run the hospitals, meeting debt obligations c) Investing activities: Involves in where/what assets the hospital is investing into to generate the required operating cashflows. The cashflow statements are not only important to the hospitals but generally in US as well to get a right sense of understanding as to how the cashflows received are actually been utilised in the business and which cashflows actually do not belong to the daily operations of the business being run. Solution Purpose of cashflow statements are to analyse the different cashflows generated by the firm(hospital) into a) Operating cashflows: The cashflows(inflows/outflows) from operating activities of the hospital i.e providing services to patients from consulting, scanning, nursing and so on. b) Financing activities: Inflows/outflows which involve in raising funds to run the hospitals, meeting debt obligations c) Investing activities: Involves in where/what assets the hospital is investing into to generate the required operating cashflows. The cashflow statements are not only important to the hospitals but generally in US as well to get a right sense of understanding as to how the cashflows received are actually been utilised in the business and which cashflows actually do not belong to the daily operations of the business being run..