Analysing the Cash

Analysing the Cash flow

The cash flow statement (CFS) is a financial statement that summarizes the amount of cash and cash equivalents inflow and outflow of a company and measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company’s financial reports. The CFS allows investors to  understand how a company’s operations are running, where its money is coming from, and how money is being spent. The CFS is important it helps investors determine whether a company is on a solid financial footing. Creditors, on the other hand, can use the CFS to determine how much cash is available (referred to as liquidity) for the company to fund its operating expenses and pay its debts. Business central has a flexibility to create both type of cash flow statement, Direct and Indirect. It also provides the functionality to create cash flow forecast

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