Purchase Solution

How a cash flow statement might be useful to a client

Not what you're looking for?

Ask Custom Question

How might a cash flow statement be useful for a client on a personal level? Specifically, what questions might this cash flow statement answer for the client?

Purchase this Solution
Solution Summary

This solution outlines the importance of cash flow statements and explains how they are useful for clients/

Solution Preview

In the world of finance and accounting, cash is king. The cash flow statement is useful to a client because it allows the client to see how well cash flows into a company's operating, financing, and investing areas. If cash flow is positive, the client would not have to ...

Solution provided by:
Keonda Grant-Taylor, MBA
Education
  • Doctorate of Management in Organizational Leadership, University of Phoenix - Online
  • MBA, Webster Univeristy
  • Dual BS Degrees, University of South Carolina
Recent Feedback
  • "Thank you"
  • "Thank you so much! This helps me understand this a lot more. Thank you!"
  • "Thank you."
  • "Thank You, Keonda! Your response is very much appreciated."
  • "Thanks!"
Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Introduction to Finance

This quiz test introductory finance topics.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

View More Free Quizzes
Related BrainMass Solutions

  • Cash flow statement vs income statement

    Therefore, cash flow statement is useful for determining the short-term ability of a company to meet its liabilities. It consists of the company's cash receipts and cash disbursements over a period of time.

  • Develop Personal Financial Statements

    (Wikipedia, 2009) The cash flow statement also tells one how the person is using its funds. This will contain the cash inflows and outflows.

  • Financial Reports and Price earnning Ratio

    Cash flow statement is different and more useful than the income statement because of the following grounds: a) If the income statement depicts the income of $ 200 million in a year, it does not mean that the company has $200 million cash in the bank

  • Calculating a manuf. budget and statement of free cash flow

    I have included a sample of a statement of free cash flows. Russell The statement of Free Cash Flow is useful to investors because it shows the amount of cash available to a company AFTER their capital expenditures.

  • financial statement discussion

    " When analyzed in a rational, logical manner, it can illuminate a treasure trove of clues as to how a company is balancing its receivables and payables, paying for its growth, and otherwise managing its flow of funds."

  • Cash Flow Statements: Michelson Ltd and Hooker Corporation

    (b) Do you think that if Hooker Corporation had been required to prepare a Cash Flow Statement, that its failure might have been avoided? You may find the ICC format (Issues, content, conclusions) useful in structuring your answer.

  • Relationships between the financial statements

    The cash flow statement is on a cash basis and discloses sources and uses of cash. These sources and uses are not readily apparent in an accrual basis company. The flow of cash is important to bankers, investors and owners. 3.

  • Lawrence Sports Discussion Questions - Credit Policy

    The most important factor in a successful business is the maintenance of free cash flow. The optimal decision should be reliant on the availability of free cash flow.

  • Financial Stmt Diffs nonprofit, HCA vs Ascension Health

    I would probably say the income statement since it summarizes the activity which will feed the cash flow and ending resources. Prepare Only One This would be very dangerous!

View More Related Solutions