A cash flow statement gives you a peek into a company's checking account.
Like a bank statement, it tells how much cash was on hand at the beginning of the period, and how much was on hand at the end of the period.
It then describes how the company spent its cash. As with a checkbook, uses of cash are recorded as negative figures, and sources of cash are recorded as positive figures.
If you're a manager in a large corporation, changes in the company's cash flow won't typically have an impact on your day-to-day functioning.
Nevertheless, it's a good idea to stay up-to-date with your company's cash flow projections, because they may come into play when you prepare your budget for the upcoming year.
If cash is tight, you will probably be asked to be conservative in your spending. Alternatively, if the company is flush with cash, you may have opportunities to make new investments.
Like a bank statement, it tells how much cash was on hand at the beginning of the period, and how much was on hand at the end of the period.
It then describes how the company spent its cash. As with a checkbook, uses of cash are recorded as negative figures, and sources of cash are recorded as positive figures.
If you're a manager in a large corporation, changes in the company's cash flow won't typically have an impact on your day-to-day functioning.
Nevertheless, it's a good idea to stay up-to-date with your company's cash flow projections, because they may come into play when you prepare your budget for the upcoming year.
If cash is tight, you will probably be asked to be conservative in your spending. Alternatively, if the company is flush with cash, you may have opportunities to make new investments.
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