Question

You discuss information that can be gleaned from the various financial statements. One I like to review is the Statement of Cash Flows. If cash is slow coming into the operation, what department would I contact for an explanation?

Answer 1

There are four financial statements of any company : Balance Sheet , Profit and loss statement , Cash flow statement and Statement of changes in owner's equity

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.

A profit and loss (P&L) statement summarizes the revenues, costs, and expenses incurred during a specific period of time. A P&L statement provides information about whether a company can generate profit by increasing revenue, reducing costs, or both.

A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses

The statement of changes in owner's equity explains the changes in a company's Share Capital, accumulated reserves and retained earnings over the reporting period. It breaks down changes in the owners' interest in the organization, and in the application of retained profit or surplus from one accounting period to the next.

  If cash is slow coming into the operation I would contact Accounts Receivable Manager since he is responsible for ensuring that receivables are quickly converted into cash and ensure smooth flow of operations.