Why is the statement of cash flows a useful document?What can creditors, investors, and other users...

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Why is the statement of cash flows a useful document?What can creditors, investors, and other users learn from an analysis of the cash flow statement?What are the advantages and disadvantage of having a large cash balance?Using the same company that you chose in Week 3, analyze and report on the statement of cash flows. (Comment on operating, investing, and financing activities)[Remember to include at least one scholarly source in your post or comments. Source must be cited in-text and full reference listed at the end of the post, both in APA format]

Khushboo · Accepted Answer

The cash flow statement is the significant and useful document as it states and reports the cash movement of the entity. This statement shows the cash inflows and cash outflows from the three activities of the entity viz operating activities, financing activities and investing activities. It is very useful financial statement for the users of the entity as it helps them in analysing the cash condition of the entity (Woodruff, Jim 2021). The users of the entity can easily identify the activities which is generating cash for the business and the activities which is consuming most portion of the cash of the entity.

Why is the statement of cash flows a useful document? What can creditors, investors, and other users learn from an analysis of the cash flow statement? What are the advantages and disadvantage of...

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