DEFINITION OF A STATEMENT OF CASHFLOWS DOWNLOAD

Is there a balance in the dividend policy and operating policy of my business?.Is my business expanding faster than it can generate funds?.How was the expansion in plant financed?.What is the internal capacity of my business to generate funds?.Will my business be able to meet its financial obligations?.Is my business growing, or simply maintaining its competitive position?.The cash flow statement aids the businessperson to answer vital questions like: Where was money obtained? Where was money put and for what purpose? Additionally, the information contained in the cash flow statement is important to answer many critical questions, such as:

DEFINITION OF A STATEMENT OF CASHFLOWS DOWNLOAD

Want to REALLY dig into your numbers? Download our new eBook “Reading Financial Statements to Aid Business Decision-Making” right now! Yes, send me my eBook! The Cash Flow Statement Answers Several Questions for You The information is also of vital importance for the person in business because it tells him/her about their business’ liquidity strength. Financial analysts focus this information to judge the ability of a business to generate cash. This information is very important from a financial point of view. The final information one looks for in the cash flow statement is the net increase or decrease in cash for the period. One must be a good manager of cash to build a business successfully because cash is vital to the operation of every business.

Understanding cash management is critically important for a person running a business.

The cash flow statement reconciles opening balance of cash (as opposed to non-cash items such as credit sales) at the start of the period with the closing balance of cash at the end of a period. In many businesses, income and cash flow are not always the same, which leads to the need for a cash flow statement showing the exchange of money between a company and the outside world over a period. Do You Understand Your Cash Flow Statement?

Definition of a statement of cashflows