Question

Write a forum post with your opinion on whether you think analyzing a company’s cash flows is useful. Do you think we need the cash flow statement? Isn’t the income statement enough? Is it worth looking at both statements?

Write at least 8 sentences in your initial post.

Bonus point: Find a public company’s 10K and the cash flow statement. Provide a link in your post to the 10K. Then, in three sentences, explain your analysis of the cash flow statement, whether you think the overall results are positive or negative, and why.

Answer 1

cash flow is the money that is moving in and out of your business in a monththat cash flow only goes one way out of the business it does flow both way.cash is important because it latter becomes the payment for thingsthat makes your business run expenses like stock , employees,rent and other operating expenses.cash flow management is the most important aspect of every business.a healthy cash flow ensures that the business can pay salaries on time and have funds for growth and expansion of the business.strong cash flow provides the comfort and capabilities a business needs to invest in growth .building new locations , invesing in research and development providing more training and purchasing more assets and inventory are among the ways of a company can grow and improve with strong positive cash flowgetting to a position of excess cash flow helps your company operate in a strategic ,proactive way ,rather than a reactive , defensive way cash flow gives business greater flexibility in responding making critical decision this strengthen the bond between the company and its owner