Cash Flows Information
Cash Flows Information
- Cash Flows Information
What information does the cash flow statement provide that you cannot see in the other financial statements (income statement, balance sheet, owner’s equity)? What elements of the cash flow statement do you think are most important for company management to monitor and why? Is this different for investors? - 250 words minimum
preview of the answer…
Cash flows are complementary financial statements that record the flow of cash and other cash equivalents of a firm. The cash flow statement is different from the income statement and balances sheet as it does not reflect cash amounts of items sold or bought on credit.The cash flow records the current flow of cash hence used to determine the liquidity of a firm. The amount of cash in the statement of cash flow is thus not equivalent to the net income
APA 473 words