Question

What are some key items a business banker should look for in a statement of cash flow?

Answer 1

FIRSTLY A BANKER SHOULD ENSURE THAT ENDING CASH FLOW FOR A PERIOD SHOULD TALLY THE CASH SHOWN ON STATEMENT OF FINANCIAL POSSITION FOR THE YEAR ENDED.

THIS HELPS TO ENSURE THAT ACCURACY OF CASHFLOW STATEMENT AND VICE VERSA

SECONDLY'

DISCLOSURE OF ASSET PURCHASE OR CAPITAL INESTMENT MADE DURING THE YEAR , THIS HELP TO KNOW ABOUT HOW MUCH IVESTED DURING YEAR END DATE

THIRDLY

CASH FLOW STATEMENT SHOULD AVOID NON CASH TRANSACTION AND THEREBY MAINTAIN DIFFERENCE BETWEEN PROFIT OR BNET INCOME ', THAT IS ONLY CASH FLOWS ARE INCLUDED.

FINALY

CHANGE IN WORKING CAPITAL ARE CONSIDERED SOURCES AND ENSURE THAT WORKING CAPITAL ADJUSTED ACCORDANCE WITH THIER NATURE