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Creditors examine the statement of cash flows carefully because they are concerned about being paid. Who...

Creditors examine the statement of cash flows carefully because they are concerned about being paid. Who are the other potential users of the Statement of Cash Flows?

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Answer #1

Solution : - The other potential users of the Statement of Cash Flows? :-

Investors :- The Statement of Cash flows helps the investor to know whether it has a positive cash flows or not , Apart from this they try to know whether company can pay dividend or not .

Bankers :- The Statement of Cash flows helps the Banks to know whether the Company has a liquidity or not to pay its debt timely or not .

Employees :- The Statement of Cash flows helps the Employees of the Company to know whether the Company is able to Pay the Payroll Expenses or not .

Management :- The Statement of Cash flows helps the management to know the Availability of cash in the Company and use to take decisions accordingly

IF there is any doubt please ask in comments

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