Importance of Statement of Cash Flow
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1) Discuss the importance of the statement of cash flow. Discuss the decisions that are made based upon this information.
2) Recommend an innovative way that the statement of cash flow may be useful when making business decisions.
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Solution Summary
This solution discusses the importance of a cash flows statement and how it can be used in an innovative way when making business decisions.
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The Statement of Cash Flows is a crucial part of the company's financial statements because it shows where the cash has come from in the period stated, and also where the cash has gone out to, in the same period. This is shown as the inflows and outflows of cash from the company. This statement is important particularly to investors, because the investors will want to see where the company is bringing their money in from, as far as operations go, and will also ...
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