Why does the income statement not present the cash inflows a
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1. Why does the income statement not present the cash inflows and outflows?
2. What are the perspectives of using ratio analysis?
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1. Why does the income statement not present the cash inflows and outflows?
- The Statement of Cash Flows shows the cash inflows and outflows from the business. The purpose of the income statement is to show the revenue, gross profit, expenses, and net income of the business. The income statement is organized as follows:
REVENUE
LESS COST OF GOODS SOLD
GROSS PROFIT
EXPENSES
EARNINGS BEFORE ...
Solution Summary
The solution discusses why the income statement does not present the cash inflows and outflows.
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