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Statement of Cash Flows
A formal statement of the cash received and disbursed through an organization. The statement of cash flows is separate into three sections that are investing activities (usually both a source and a use of cash), operating activities (usually a source of cash), and financing activities (usually a source and use of cash). When cash is paid or received for more than one activity it is allocated to that activity which is the prime motivation for the cash flow. For example there are many organizations which consider cash spent on new equipment to be an investment activity rather than an operating activity.
Q. Types of financial statement analysis? 1) External analysis This analysis is performed by external stakeholders like lenders, suppliers, investors, and governments. 2)
how can management use financial ratios
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Q. Example on Controlling working capital? Describe how a manufacturing company could control its working capital levels and impact of the suggested control measures. Solut
are footnotes important in analysing ratios
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