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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1059 |
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“The purpose of this statement is to emphasize the critical nature of cash flow to the operations of the firm. According to accountants, cash flow represents cash or cash equivalent items that can easily be converted inot cash within 90 days†(Bock &Hirt, chap 2, pg. 8). Cash flow statements are divided into three primary sections which are cash flows from operating, investing and financing activities...
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Operating activities include the generation and expenditure of funds in normal operations. Investing activities include the sale and purchase of plant and equipment and liquidation of long term investment. Financing activites include the sale of bonds, stocks, and other securitiies. Financing activies also covers the repurchase of these same stocks and bonds, and payment of cash dividends...
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