Student Painters had revenues of $17,400 and expenses of $10,400 last summer. There were no depreciation expenses. However, the business reported the following changes in working capital: Beginning of Year End of Year Accounts receivable $ 2,600 $ 5,900 Accounts payable 980 440 Calculate net cash flow for the business for this period.

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Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.