Discuss the reasons why net income for a particular period does not necessarily reflect a firm's cash flow during that same period. Give some examples of when a company could be showing a net loss but still be generating substantial cash. What are the characteristics of a strong income statement? What are the characteristics of a strong statement of cash flows?
Cash flow statement is one of the key financial statements. Financial Statements is designed primarily to assist investors and creditors in deciding where to place their scarce investment resources. It is also used to help management to know the performance of organization.
Financial statements are useful tools for evaluating both profitability and liquidity. Used separately, or in combination, the income statement and balance sheet help interested parties to measure a company's current financial performance, and to forecast its profit and ...
This discusses the characteristics of a strong statement of cash flows and income statement