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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

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BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
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How do investors, creditors! and others typically use the information in the statement of cash flows?

To determine

Introduction:

Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities that are carried out in a business i.e. operating activities, investing activities and financing activities.

To state:

The way the information present in the cash flow statement is used by the investors, creditors, and others.

Explanation

The cashflow statement is useful to all the external users in various ways that include:

Investors- Cash flows statements of a company play a major role to help the investors take decision whether to invest in a company on not. The company which manages its cash well and provide more rate of returns on investment, the investors usually prefer that company than a company that have low rate of returns on its investments...

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