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Can you think of any instances in which a company would not

Can you think of any instances in which a company would not need cash?
What particular items on the cash flow statement would indicate extreme risk to an investor? Do you think the importance of each section of the cash flow statement depends on what stage a company is in its lifecycle? For example, would one section be more important to a start up while another section would be more important to a cash cow? Why or why not?

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Can you think of any instances in which a company would not need cash?

-- There are some companies that know they have a down time during the year, where incoming profits will diminish. In order to accommodate for these months, the companies basically set it up as to where they will not need actual cash to operate. During the peak seasons, the company prepays as many items as they can, like rent, insurance, and various services. The company then runs a credit account with their suppliers and vendors, and establishes non-cash transactions for their business activities. By doing so, the company does not actually need cash to operate during their down season, and can begin to pay the accounts off when business picks back up.

What particular items on the cash flow statement would indicate extreme risk to an investor?

-- As an investor, the first part I would examine on the cash flow statement are the ...

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Can you think of any instances in which a company would not need cash?
What particular items on the cash flow statement would indicate extreme risk to an investor? Do you think the importance of each section of the cash flow statement depends on what stage a company is in its lifecycle? For example, would one section be more important to a start up while another section would be more important to a cash cow? Why or why not?

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