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Business
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| Number of pages / Number of words: |
3 / 669 |
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For example, this discrepancy may be troublesome for a company that has fleet older heavy equipment which needs replacing.
The final type of financial statement is the statement of cash flows which represents cash or cash equivalent items. The statement of cash flows main purpose “is to emphasize the critical nature of cash flow to the operations of the firm†(Block & Hurt, 2005, p...
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The statement of cash flows main purpose “is to emphasize the critical nature of cash flow to the operations of the firm†(Block & Hurt, 2005, p. 12). The statement of cash flow also translates information from the income statement and balance sheet into cash flow information. This is useful for the business because the statement of cash flows reveals where the money went, unlike the income statement...
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