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1)  How will the loans provided to small businesses by the US Government during the Covid-19 crisis...

1)  How will the loans provided to small businesses by the US Government during the Covid-19 crisis be shown in the statement of cash flows?  Why is cash flow so important to small businesses?

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Answer #1

in the financing activity of cash flow statement , loans provided by us government will be recorded as cash inflow.

importance of cash flow for small business are as follows - :

1. cash is king - it puts you in more stable position and with better buying power

2.timely debt payment - helps you in paying the obligations on time which helps in creating high credit worthiness of business.

3.growth and development is possible only with the help of cash flow .

4. long term positive cash flow result in good reputation of business

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