Why are financial analysts interested in the statement of cash flows?
What will be an ideal response?
Understanding the cash flows of a business is essential because cash is used to pay the bills. A company, especially one experiencing rapid growth, can be short of cash in spite of earning substantial net income. A business cannot survive without managing cash flow carefully.
You might also like to view...
To review the current market price of the stock, one should review the
a. balance sheet. b. income statement. c. statement of cash flows. d. none of these; it is not on the financial statements.
Which colors would be best suited to produce emotional, vibrant, hot, and active responses from customers?
A. White, eggshell, ecru, and other white hues B. All the colors of the rainbow C. Blue and green tones D. Red, gold, and yellow tones E. Pink, red, and magenta tones
When analyzing a firm's long-term, debt-paying ability, we only want to determine the firm's ability to pay the principal
Indicate whether the statement is true or false
Due to a recession, Acme Global has a labor surplus. It wants to find a way to reduce the surplus while both being fair to employees and being ready to respond to increased demand when the recession is over. Its best method for dealing with its surplus would be ______.
A. job sharing B. early retirement C. hiring freezes D. natural attrition