Why statements of cash flow important to decision making

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  The statement of cash flow is an important financial statement that displays the movement of cash in the organization, i.e., the outgoing and incoming cash in the organization for various financing, investing and operating activities.

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  For each decision, explain why cash flow is important. 1. A significant decision we make on a regular basis is whether to put our excess cash into investments. Oftentimes the firm invests in marketable securities.

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  This statement is useful for decision making because it provides relevant and reliable information for predicting cash flows.

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• Why are balance sheet, the income statement, the statement of cash flows, and the statement of shareholders' equity important in order to understand the financial condition of the organization?

  491602 Why are balance sheet, the income statement, the statement of cash flows, and the statement of shareholders' equity important in order to understand the financial condition of the organization? 1.