Write one page paper about The importance of the statement of cash flows to investors and support...

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Write one page paper about The importance of the statement of cash flows to investors and support your position.

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Write one page paper about The importance of the statement of cash flows to investors and support your position. Guidelines.Single spaced.9 point fontMargins – Moderate – 1” top/bottom. .75” left/right Graded as follows: 70% content15% grammar15% conformity to standards The following page is an example of format! NAME: David TownsendTOPIC: The importance of the Dupont Method: Why it’s still relevant.Pellentesque sit amet libero nec dolor hendrerit luctus. Pellentesque lobortis, lorem eu dictum elementum, nisi nibh porta metus, sit amet laoreet arcu est vitae mauris. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vestibulum in odio lorem, eget venenatis dui. Donec sapien risus, mattis id tempor at, malesuada ut elit. Sed bibendum neque vehicula metus tincidunt tempus. Fusce porta, sem at rhoncus suscipit, tellus lacus laoreet magna, at ultrices dui turpis eget erat. Aenean dapibus, odio sit amet porta venenatis, nisl dolor adipiscing ligula, egestas porta turpis tellus ac urna. Mauris vel sagittis tellus. Sed leo quam, bibendum vel sodales at, consequat sed tellus. Pellentesque elementum, ante et commodo ornare, sapien lorem rhoncus nulla, a consectetur diam tellus vitae urna. Mauris sed orci sit amet libero suscipit vestibulum at et eros. Vivamus vel lobortis tortor. Praesent convallis suscipit diam at egestas. Ut sodales, nibh vitae sodales rhoncus, magna augue aliquam justo, ac mollis elit nibh eu mauris. Sed lobortis, nunc in faucibus tempor, risus dolor venenatis libero, nec iaculis purus metus at urna. Nam rhoncus neque id nulla pulvinar non mattis metus mattis. Cras odio risus, dapibus ac euismod eu, interdum scelerisque elit. Sed quam massa, malesuada interdum elementum et, malesuada ut sem. Nulla sollicitudin pharetra neque sed pharetra. Nunc vitae lorem nec dui fermentum consequat. Donec arcu ipsum, vestibulum sed porttitor id, feugiat eget eros. Donec volutpat velit sed urna tristique tempus vel quis nulla. Sed bibendum risus et...

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David · Accepted Answer

Cash flow can be broadly defined as cash inflow net of cash outflow, Investment in Fixed Assets, funds raised during the year etc. Cash 
flow statement comprises of three parts which are as follows:- 
Cash flow from operations 
Cash flow from investing activities 
Cash flow from financing activities 
Cash flow can be broadly defined as cash inflow net of cash outflow. “Cash is king”, “Cash is lifeblood of the business” these are few 
phrases used in the financial markets to represent the importance of cash flow in the business, even the listing agreement of stock 
exchange’s which are signed by the companies in order to get their stock listed includes a condition that company should also provide cash 
flow statement to its investors with its annual statements which means it is compulsory for every listed entity to prepare cash flow 
statement. It is not only out of compulsion that companies prepare cash flow statement but it is also beneficial for the companies to prepare 
cash flow statements because it helps companies to analyze various things such as difference between net profit and cash flow from 
operations, increase in inventory which may represent production of slow moving inventory in abundance etc.  
All the financial statement are prepared on accrual basis as per the current accounting standards, whereas cash flow statement is prepared 
on the basis of cash flows and not accrual system of accounting,

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