Humanities Homework Help

Please respond to david with 200 words

The Statement(s) of Cash Flows show and tell us a lot of how a business operates. The statements of cash flow tell us how well a business manages their finances such as cash handling, debt payoff, and obligations to fund its operating expenses. The cash flow statement overall summarizes all financial gains that enter and leave the business it is why it’s a financial document which complements the balance sheet and income statement, which are mandatory part of any business’s financial reports. Overall, as discussed in chapter 13, the usefulness of the statements of cash flow are:

• Entity’s ability to generate future cash flows.
• Entity’s ability to pay dividends and meet obligations.
• Reasons for difference between net income and net cash provided by operating activities.
• Cash investing and financing transactions during the period