Uses of cash flow statements, Accounting Basics

Uses of cash flow statements:

The main usefulness of cash flow analysis is that it facilitates the Finance manager to approximation the cash necessities of the firm and match the cash outflows and cash inflows in such a way that the gross result will either decrease the cost of capital or maximizes the rate of return or may be both.  A number of the additional uses of cash flow analysis comprise the subsequent:

1. It facilitates the efficient planning and coordination of financial operations

2. It facilitates proper allocation of cash along with the a variety of activities of the firm

3. It aids the management in its investment decision

4. It make easy the management in accurately analyzing the past business activities and plan for future.

5. It offers the liquidity picture of the concern etc

Posted Date: 10/15/2012 6:42:56 AM | Location : United States







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