Cash Flow Statement Analysis

Cash Flow Statement Analysis is one of the most important aspects of understanding a company’s financial health. One of the most critical of all financial records, the cash in flow statement (CFS) has been a legally required document for more than 30 years. In the simplest terms, it is the document that records all cash that enters and leaves the business for any purpose. The primary purpose of the cash in flow statement is to show investors and outsiders in general how the company is operating, where it is getting its money from, and how or where it is being spent. A cash in flow statement is unique in that it doesn’t include future income or outgoings – only the exact financial position the business is in right now. For obvious reasons, preparation of cash in flow statements must be meticulous in terms of both accuracy and completeness.

 

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This insightful tutorial focuses not only on the creation of cash in flow statements, but also on Cash Flow Statement Analysis and the core principles of working capital. Discover how accounts and businesses determine working capital requirements, along with how cash is both sourced and used in a corporate setting. Learn how to analyse and use data from an indirect or direct cash in flow statement to steer the business in a more profitable direction.

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