The cash flow data of Palomba Pizza Stores for the year ended December 31, 2009, are as...

The cash flow data of Palomba Pizza Stores for the year ended December 31, 2009, are as follows:

a. Prepare a statement of cash fl ows for Palomba showing:

• Net cash provided by operating activities.

• Net cash provided by or used in investing activities.

• Net cash provided by or used in fi nancing activities.

b. Discuss, from an analyst’s viewpoint, the purpose of classifying cash fl ows into the three categories listed above.