It is one of the main financial statements. A statement called "cash flow statements", which shows the amount of cash that is created and used by a company in a given time. It is calculated by adding the cost of noncash charitable (such as depreciation) for net income after tax. Cash flow can be attributed to a specific project, or for a business as a whole. Cash flow statement reflects all the coins changes by 3 activities: business, finance and investment. Moreover, it is very useful because it shows whether the company has the ability to convert receivables into cash and essentially, facilitates the ability for companies to repay debt. Repayment ability is the ability to pay the Bills when due. In the end, cash flow can be used as a sign of financial strength of a company.
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