Cash flow statements

Cash flow statement is also a financial statement document that contains all the data of amount of cash entering or leaving the company. It is a very important document which tells us that how well the company generates cash to fund its expenses and to pay the dept. The cash flow statement is an important financial document that provides investors the full insight of all transactions that goes through a company. It is very difficult for the companies to adequately manage the cash flow so that is why cash flow statement is very crucial and important document for company, investors and analysts.

The Importance of Cash flow statement is that It is very useful for the management of the company for the purpose of short term planning with keeping of control on cash accordingly. It provides us the full detailed about where the money is spent. It helps us to focus on creating the excess cash. It helps us to manage the cash to prepare an estimate of inflows and outflows of cash for future planning.

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