Question

Evaluate the cash flow statement of the company in question 1. Explain why the numbers on...

Evaluate the cash flow statement of the company in question 1. Explain why the numbers on the cash flow statement are more feasible than the numbers on the income statement for a potential investor.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The statement of cash flows if better for a investor since it gives an overall financial picture of the company i.e relating to the operations, investments and financing activities. Also, income statement includes non cash activities which may show profits that are non monetary. Hence the positive/ negative cash flows of a company show the real financial position. Also an investor will be more interested in the actual inflows of cash than notional profits.

Add a comment
Know the answer?
Add Answer to:
Evaluate the cash flow statement of the company in question 1. Explain why the numbers on...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT