Question

Discuss the Cash Flow Statement, the information it contains. Discuss questions that the Cash Flow statement...

Discuss the Cash Flow Statement, the information it contains. Discuss questions that the Cash Flow statement answers for investors.

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Answer #1

Cash flow statement is a financial statement that shows how much amount of cash and cash equivalent gets in and out of the company which in turns show the performance of the compant in term of managing cash.Cash flow statements will contain cash flow from three activities that is, from operating, investing and financial activities.Cash flow statements are very imporant for share holders before investing as they provide informations about the companies earning capacity and how much the company is spending.It helps to analyse the companies abilities in generating income from its core activities and also the share holders can compare the cashflow states of different companies to take a profitable decision.

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