Cash Flow Statement – Why It Matters

Along with an income statement and a balance sheet, the cash flow statement provides a (potential) investor with valuable insight about the health of a business. It covers three key areas where cash moves in and out of a business. 1) Operations 2) Investments and 3) Financing. When reviewed with an income statement (a.k.a. Profit and Loss or P&L Report) and a balance sheet (Assets & Liabilities),...
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