To know the liquidity position of a firm.
To know the principle source of cash.
To know the uses of cash.
To be used widely by banks,financial institutions and other credits granting institutions for judging repayment capacity of a firm.
To analyse inflow and outflow of cash.
lNet income based on accrual accounting is not cash earnings.
lWe need a statement of cash flows to provide information about a company's sources and uses of cash.
Provide information about the operating ,investing and financing activity of an entity during a period
structure of cash flow statement as follows:1
Another name of cash flow statement is fund flow statement.
depreciation is not part of cash flow statement and in indirect method for cash flow it will be added back to cash flow from operating activities.
cash flow statement is statement which shows company cash inflows and outflows from operating, investing and financing activities.
Provide information about the operating ,investing and financing activity of an entity during a period
Another name of cash flow statement is fund flow statement.
Cash flow statement is the statement which show the cash flow from operating, financing and investing activities.
Yes it is correct as cash flow statement only deals in cash so non cash items should be eliminated from cash flow statement.
structure of cash flow statement as follows:1
Free cash flow is the sum of operating and investing cash flows, which are reported on the cash flow statement.
Another name of cash flow statement is fund flow statement.
yes changes in capital is shown in cash flow from financing activities in cash flow statement.
Sample cash flow statement as follows:1 - Cash flow from operating activitiesReceived from debtorsPayment to creditors2 - Cash flow from financing activitiesPurchase (sales) of asset3 - Cash flow from investing activitiesnew share capital introduced etc.
A cash flow statement is a financial statement that shows the changes in a companyβs cash position over a given period. A cash flow projection is an analysis of how the company will make money in the future. The difference between these two statements is that the projection includes information about what will happen to a company's cash balance from now until then, whereas the statement only shows how much money has been made or spent during that time period.
investing activities in cash flow statement
depreciation is not part of cash flow statement and in indirect method for cash flow it will be added back to cash flow from operating activities.